FTX-driven crypto market woes echo 2008 GFC, Binance CEO warns

Binance CEO Changpeng Zhao warned that the cryptocurrency market faces more trouble on the horizon as rival crypto exchange FTX's collapse is set to result in further industry-wide deterioration, he said at a conference in Indonesia, as reported by the Financial Times on Friday. “With FTX going down, we will see cascading effects,” Zhao alerted, noting that troubles brewing across the crypto space resemble the 2008 Great Financial Crisis. “Especially for those close to the FTX ecosystem, they will be negatively affected.” Following a wild weak of events, Sam Bankman-Fried stepped down from his role as FTX chief Friday as the beleaguered crypto exchange filed for Chapter 11 bankruptcy proceedings in the U.S. The once-might exchange is undergoing a liquidity crisis of its own in the face of its multibillion-dollar balance sheet shortfall. Earlier this week, the FTX.com signed a non-binding deal with Binance to sell itself, though the latter pulled out just a day later, citing fund mishandling and regulatory issues. Since then, FTX.com has been scrambling for rescue financing that doesn't appear close to taking effect given its ongoing liquidity crunch. With FTX.com deprived of cash, Zhao noted that it "obviously" won't be able to buy the assets of troubled crypto lender Voyager Digital ( OTCPK:VYGVQ ). Recall at the end of September when FTX, which was known to be a "savior" of distressed crypto-related firms at the time, was said to have scooped up Voyager for just $51M after initially winning a $1.4B bid for the lender. Eventually, though, the crypto market "will heal itself," Zhao said, as quoted by the FT . Earlier, FTX meltdown rumbles on: Assets frozen by Bahamas regulator, EU operating license halted .