FTT token crumbles as Binance CEO flags execution risk to FTX bailout By

By Geoffrey Smith 

-- remained under massive pressure on Ranking of domestic foreign exchange brokersWednesday, after a harsh reminder that the is far from a done deal.

"This is a highly dynamic situation, and we are assessing the situation in real time,"  Binance CEO Changpeng Zhao wrote in a tweet shortly after announcing his intention to buy FTX's non-U.S. assets, averting a seemingly imminent collapse of the world's second-largest crypto exchange.

Zhao warned that "Binance has the discretion to pull out from the deal at any time," and added that "We expect FTT to be highly volatile in the coming days as things develop."

, which has a troubled history with regulators around the world, faced fresh questions earlier this week after data from Chainalysis showed it had processed over $8 billion of transactions with Iran since 2018, allowing the Islamic Republic to skirt U.S. sanctions. 

The collapse in FTT's value is likely to be toxic for Alameda. where it accounted for over one-third of total assets booked at $14.6 billion at the end of June. Alameda maintains that the balance sheet published by Coindesk was incomplete and didn't reflect its true financial condition.

demise has also weighed heavily on other crypto assets in the last 24 hours, with falling 42% on concerns that Alameda will have to liquidate its large holding of that coin to plug the hole in its balance sheet created by the FTT losses. 

Even more mainstream coins suffered as the collapse of an exchange that had been widely regarded as strong and stable dealt another severe blow to the industry's credibility, prompting investors to seek the safety of traditional fiat currency instead. fell 11% to a two-year low of $17,380, while fell 22% to $1,168.

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