Binance CEO Changpeng Zhao said he would never have entered into the deal Alameda Research struck with Voyager Digital.
The Alameda company, founded by crypto-billionaire Sam Bankman-Fried (CEO of FTX), last month provided a $500 million loan to crypto-broker Voyager Digital. Voyager’s Chapter 11 bankruptcy filing on Wednesday said Alameda itself owed Voyager $377 million.
It was unexpected even for me, to be honest. I try not to comment on our competitors or colleagues in the industry. But I would never take such a deal. I would never say, “I invest in your company and then you lend me money.” I would simply not invest in this company, and would keep my money to myself.
Changpeng Zhao, CEO of Binance
CZ declined to comment on the rest of the deals that Bankman-Fried’s companies have made over the past two weeks amid the massive cryptocurrency liquidity crisis. But Zhao previously said that he and the Binance team believe things should be more straightforward.
Personally, and Binance to a large extent, I like very simple deals like, “What’s your income? What is the number of your users?”. We don’t like deals like, “I owe you this money, you pay me back this much money, you invest in me, I lend you even more money, and then you bail me out.”
Changpeng Zhao, CEO of Binance
On June 23, two days after FTX announced a $250 million loan to defunct cryptobroker BlockFi ($400 million last week), CZ posted a message on its blog:
“Don’t perpetuate bad companies, ” he wrote. – Allow them to fail. Allow other, better projects to take their place.”
I’m has been actively developing my agency, INCRYPTICO, together with the team of marketing specialists, advertising and PR managers who have all been working together earlier.
