Top cryptocurrency news: CZ blames 'bad actors' for cryptocurrency exchange jitters: Binance vs. FTX

20-Aug-2022 By: Divya Behl

Changpeng 'CZ' Zhao, CEO of cryptocurrency exchange Binance, expressed worry for traders after learning about the infamous phenomenon of trading jitters on other cryptocurrency exchanges.

Jitters in crypto trading refer to a trade event in which an investor's buy or sell order gets stuck and moves down the list, enabling fresh trade orders to go through.

While CZ's concerns about jitters did not specifically mention any exchange, the crypto community on Twitter felt it was a jab at FTX, a crypto exchange led by Sam Bankman-Fried. CZ responded to the community's reaction, which identified jitters as a well-known and recognized the situation, by saying: “You were all aware yet remained quiet. We must fight the bad actors.”

CZ then called VIP traders on Binance, who reportedly verified knowing about the illegal trade activity. The indirect claim against FTX exactly matches with the timeline when the Federal Deposit Insurance Corporation (FDIC) issued a cease and desist order to the exchange and four other cryptocurrency companies.

The FDIC claims that FTX US, SmartAssets, FDICCrypto, Cryptonews, and Cryptosec deceived investors by saying that their products were FDIC-insured. In response to the claim, FTX US president Brett Harrison deleted a tweet that made the allegations opposed by the FDIC. However, Crypto Twitter was quick to bring out countless additional instances in which Harrison improperly claimed FDIC insurance.

In an attempt to cushion the blow, SBF stated his intention to engage with the FDIC in the future while emphasizing that “FTX US is not FDIC insured.”

In addition to the aforementioned developments, FTX has apparently begun barring accounts that have sent cryptocurrencies using zk.money, an Ethereum-based private layer-2 chain provided by the Aztec Network.

In response, SBF backed FTX's decision to monitor the accounts on the grounds of anti-money laundering (AML) compliance. However, he responded to the allegations by saying, "but that does not imply that any accounts were suspended."

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