Sam Bankman-Fried has spent hundreds of billions of dollars in saving cryptocurrency companies that are currently struggling.
The CEO of Binance, Changpeng Zhao, has revealed that he wouldn’t do the type of deals Sam Bankman-Fried did with his FTX and Alameda Research companies. CZ made this statement during a podcast interview with Decrypt.
Last month, Alameda extended a $500 million line of credit to crypto broker Voyager Digital. The cryptocurrency broker filed for Chapter 11 bankruptcy earlier this week and the filing showed that Alameda itself owes Voyager $377 million.
When asked about Voyager and Alameda, CZ said;
“That was surprising even to me, to be honest. I try not to comment on our competitors or industry peers. But I would never do that type of deal. I would never say, ‘I will invest in your company and then you loan me some money.’ I would just not invest in that company, I’ll keep my money.”
CZ was reluctant to discuss some of the other deals conducted by Bankman-Fried but he pointed out that Binance wouldn’t do those types of deals. He said;
“Personally, for me, and to a large extent for Binance, we like very simple deals. We like deals like, ‘What’s your revenue? What’s your user number?’ We don’t like deals where, ‘Hey, I owe you this money, you pay me back this much money, you invest in me, I give you more money in loans, and then you bail me out.’ Why don’t we just return all the money and go back to zero and talk about net, who owes who money?”
CZ said he has always maintained that bad companies should not be salvaged. He stated that;
“Don’t perpetuate bad companies. Let them fail. Let other better projects take their place, and they will.”
Binance is the world’s largest cryptocurrency exchange by market cap, with a daily trading volume of over $12 billion.