Before SBF and FTX fell from grace, FUD (fear, uncertainty and doubt) was the most hated acronym in cryptocurrencies. Changpeng Zhao, chief executive of crypto exchange Binance, once warned people that simply reading about FUD was likely to make them poorer.
CZ, as he is known, has become reflective as crypto prices have fallen. FUD had triggered a “stress test”, he claimed. Binance suffered outflows of $1bn on Tuesday. CZ says withdrawals cannot destabilise its business. Brave.
Outflows from Binance are part of a broader flight from cryptocurrencies amid plummeting prices. The company is grappling with particular problems too. This week, it was reported that the exchange is facing a criminal investigation over compliance with US money laundering and sanctions laws. In the UK, the Financial Conduct Authority warned last year that it was “not capable of” supervising Binance. Many high street banks halted transfers of cash.