CZ Calls Out “Bad Players” For Crypto Exchange Jitters

The CEO of the Binance crypto exchange, Changpeng ‘CZ’ Zhao sparked concern among traders after learning about the infamous phenomenon of...



The CEO of the Binance crypto exchange, Changpeng ‘CZ’ Zhaosparked concern among traders after learning about the infamous phenomenon of trade jitters on other crypto exchanges.

The jitters in crypto trading relate to a trade event in which an investor’s buy or sell order is blocked and moves down the list, allowing new trade orders to proceed.

While CZ’s nervousness concerns didn’t explicitly target any particular exchange, the crypto community on Twitter assumed it was a dig at FTX, a crypto exchange run by Sam Bankman Fried. Responding to community backlash that suggested “frightening” was a well-known and accepted situation, CZ added:

“You all knew and you didn’t say anything. We have to fight bad players.

CZ further contacted VIP traders on Binance, who allegedly confirmed to be aware of the illicit trading activities. The indirect allegation against FTX coincides perfectly with the timeline when the Federal Deposit Insurance Corporation (FDIC) has issued a cease and desist order to the exchange and four other crypto companies.

According to the FDIC, FTX US, SmartAssets, FDICCrypto, Cryptonews and Cryptosec allegedly misled investors by claiming that their products were FDIC insured. Reacting to the order, FTX US President Brett Harrison deleted a tweet make claims disputed by the FDIC. However, Crypto Twitter was quick to point out numerous other instances where Harrison falsely claimed FDIC insurance.

In an attempt to cushion the freefall, SBF revealed its intention to work with the FDIC in the future while reiterating that “FTX US is not FDIC insured.”

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Along with the above developments, FTX reportedly started blocking accounts that sent cryptocurrencies via zk.money, a private layer 2 channel provided by the Aztec network on Ethereum.

In response, SBF supported FTX’s decision to monitor the accounts citing anti-money laundering (AML) compliance. However, he refuted the claims adding, “but that doesn’t mean any accounts have been frozen.”