Binance boss says that the almost collapse from FTX has eroded confidence in the crypto industry strong

The almost collapse of FTX has "seriously shaken" trust in the crypto industry and will trigger a stricter examination by the supervisory authorities, Binance boss Changpeng Zhao said a day after staging a rescue of the arch rival of the stock exchange.

ZHAO said in a note to employees who was presented to the Financial Times that the rescue operation, which consolidated the position of Binance as the world's largest crypto trading, was not a "profit".

"The supervisory authorities will examine the exchange more precisely. Licenses around the globe will be more difficult to get," Zhao wrote to the employees early Wednesday.

The news also explained the speed of the deal, which he had agreed with his counterpart Sam Bankman-Fried to prevent the complete collapse of FTX, which had a value of $ 32 billion at the beginning of this year. Binance refused to comment on the internal memo.

The two men shocked the crypto industry when they announced on Tuesday that Binance had agreed to save FTX after an increase in customer withdrawals caused a liquidity crisis.

The problems at FTX were accelerated after Zhao said at the weekend that his company was planning to sell FTX's own digital token worth more than $ 500 million, a sum that put the average daily trading amount in the shade.

"We did not master this or anything that is related to it," said Zhao.

"SBF called me less than 24 hours ago. And before that I had very little knowledge of the internal state of things at FTX. I could do some mental calculations with our income to guess yours, but it would never be very precise," said Zaho.

"I was surprised when he wanted to talk. My first reaction was, he wants to complete an OTC business. But we are here," he added.

Zhao said that after a call with Bankman-Fried, he ordered on Tuesday to hire the sale of FTT, a token issued by FTX.

ZHAO said that the deal with FTX is underway, and has publicly stated that he could still step down from the deal. In a tweet on Wednesday before, he indicated his views about what went wrong with FTX.

"Never use a token you have created as security. Have a big reserve, ”tweeted Zhao.

After the almost collapse of FTX, Binance and other larger exchanges have promised to publish further evidence that they keep their customers' funds in safe reserves that are easily available to make payments.

"We have to increase our transparency, proof of reserves, insurance funds etc. significantly. In this area there will be much more. We have a lot of hard work before us. Not to mention the wildly fluctuating prices," he wrote to the employees.

The Binance boss also admitted that a takeover of FTX, which would by far create the largest crypto exchange in the world, would paint a goal on the back of the company.

"People now think that we are the biggest and will attack more," he said.