Professor of Economics at NYU Nouriel Roubini recently criticized Binance CEO Changpeng Zhao, saying that he is “even shadier” than slandered FTX founder Sam Bankman-Fried.
Not very long ago, Bankman-Fried was single-handedly saving struggling bitcoin companies. Overly favourable parallels to famed American banker John Pierpont Morgan, who carried out a series of private rescues during the financial crisis of 1907, resulted from his efforts to revive crypto following the disastrous collapse of Terra.
In November, the man who seemed unbeatable himself needed saving. Due to the failure to get a bailout, FTX Group filed for bankruptcy last week, and Bankman-Fried lost his billionaire title as a result. Bankman-Fried, a former crypto entrepreneur, has been accused of utilizing client funds to prop up his business, leading some to speculate as to whether he would be prosecuted for what looks to be wire fraud.
Zhao, CEO of Binance has said that in the wake of his greatest rival’s demise, Binance would establish a recovery fund to aid projects experiencing a “liquidity crisis.” And this is after he predicted that the cryptocurrency market might have its own financial crisis similar to the one that hit the global economy in 2008. The CEO of Binance claims that he has already been contacted by many financial institutions.
Famous 2008 crisis predictor Roubini believes that Zhao is following in Bankman-footsteps by acting as a lender of last resort for “crypto frauds.”
the news is “very unclear,” according to the 64-year-old economics professor. Separately, he tweeted that the cryptocurrency sector is a “corrupt filthy ecology.”
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