Binance CEO Changpeng Zhao compared the current events unfolding around FTX to the start of the 2008 financial crisis and the Lehman Brothers collapse.
Due to the prominence of FTX and its high level of integration within the crypto industry, Zhao expects significant fallout. The Binance founder said he anticipates that more companies will fold as the exchange’s collapse cascades across the industry.
CZ said this would especially be the case for firms “close to the FTX ecosystem.” Describing the global financial crisis as “probably an accurate analogy,” Zhao believes the consequences will be severe.
Binance CEO role in FTX Downfall
Binance CEO Changpeng Zhao himself played a significant role in the downfall of Sam Bankman-Fried and his companies FTX and Alameda Research. There had been persistent suspicion about the relationship between these two companies, which subsequently came to light.
Earlier this week, Zhao…
