- Binance co-founder Changpeng ‘CZ’ Zhao hit back at Senator Elizabeth Warren in a post on X after she named him in a letter to the Federal Reserve and Treasury.
- In the letter, Warren asked the government not to use taxpayer dollars to bail out “cryptocurrency billionaires.”
- She also cited concerns around Trump-backed World Liberty Financial potentially profiting from any interventions by the government.
Binance (BNB) co-founder Changpeng “CZ” Zhao pushed back on Thursday after Senator Elizabeth Warren cited him by name in a letter warning against a potential federal bailout of the cryptocurrency industry.
“Crypto never needed a bailout, never will,” he wrote in a post on X, citing Warren’s letter to the Federal Reserve and the Treasury, asking for assurance against any kind of bailout for the crypto industry.
Warren’s letter specifically referenced Zhao alongside Coinbase (COIN) CEO Brian Armstrong, Strategy (MSTR) executive chairman Michael Saylor as well as President Donald Trump for his role in World Liberty Financial (WLFI) in her list of high-profile crypto executives who have suffered paper losses during the market downturn. Her main concern was that “crypto billionaires” should not expect government support,
Bitcoin Slide Triggers Bailout Concerns
The crypto market has been caught in a downslide since October, when Bitcoin (BTC) hit a record high of over $126,000. Analysts and experts have debated over whether the ‘crypto winter’ has onset, and if it has, how long it’s going to last.
Bitcoin’s price was trading at around $67,854 on Thursday night, up 1.1% in the last 24 hours and down more than 46% since October’s peak. Retail sentiment around the apex cryptocurrency on Stocktwits continued to trend in ‘bearish’ territory over the past day.
One user described the move as a retracement of roughly 61.8% from the prior breakout level.
Another speculated whether Trump might address Bitcoin in next week’s State of the Union speech.
What Did Elizabeth Warren Say About Crypto Bailout?
In the letter addressed to Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell, Warren asked the government not to “use taxpayer dollars to bail out cryptocurrency billionaires and other highly leveraged cryptocurrency investors.”
According to a report by CNBC, she also pointed to Trump-backed World Liberty Financial (WLFI), citing the potential for the company and President Donald Trump to profit from any interventions by the government.
She stated that WLFI has sold around 173 wrapped Bitcoin over the past few months. “This transaction was made to repay $11.75 million in USDC stablecoin debt, thereby avoiding liquidation as Bitcoin’s price dropped below $63,000,” she wrote.
WLFI’s price edged 0.6% lower in the last 24 hours, even as the broader cryptocurrency market climbed higher. On Stocktwits, retail sentiment around the WLFI token rose to ‘extremely bullish’ from ‘bullish’ territory over the past day, with chatter trending at ‘extremely high’ levels.
Crypto Billionaires Face Paper Losses
Warren cited Michael Saylor’s Strategy (MSTR) as an example of a company that has taken a big hit during the cryptocurrency market downturn. She noted that Strategy’s shares have fallen nearly 20% since the start of the year.
MSTR’s stock was up 1.2% in the overnight trade, with retail sentiment around the shares trending in ‘neutral’ territory over the past day, as per Stocktwits data.
“Other major Bitcoin investors have also seen losses, including Binance founder Changpeng Zhao, who reportedly lost nearly $30 billion, and Coinbase’s Brian Armstrong, who reportedly lost $7 billion,” she wrote.
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