According to reports, the President of El Salvador, Nayib Bukele, has dispelled the claims that his government has its bitcoin storage on the exchange FTX. The recent development comes from the CEO of Binance, Changpeng Zhao, who stated that he had a talk with the president about the issue.
Does El Salvador keep its Bitcoin holdings on FTX?
Following the collapse of FTX and the price drop of its native token, FTT, the entire cryptocurrency sector has come under intense scrutiny and criticism. Quite a few businesses, like Galaxy Digital that revealed the exposure of its $76.8 millions to FTX, have acknowledged that they have considerable exposure to the financially troubled organization. Some people have even brought up the possibility that El Salvador keeps all of its bitcoin holdings on FTX.
However, CZ denied the rumors in a tweet on the official account. He revealed that he had a conversation with President Nayib Bukele, who confirmed that the nation had “never had any business” with SBF’s trading venue.
Mike Novogratz, the Chief Executive Officer of Galaxy Digital, was one of the people who initially fanned the stories but afterwards issued an apology for their actions. Novogratz expressed his gratitude to Zhao for shedding light on the circumstances and apologized for actually believing the “fake news” before it was formally established.
Notably, the Central American nation was the first in the world to declare bitcoin to be a valid form of currency. El Salvador is garnering both praise and criticism from people all over the world. However, the country’s Minister of Finance, Alejandro Zelaya has lately defended the country’s plan. Over the course of the last few months, the national government invested tens of hundreds of millions of dollars and accumulated a total of 2,381 BTC but because of the falling value of the coin, the nation is already sitting on an unrealized loss of more than $65 million.