ABU DHABI, UAE— No, the crypto industry isn’t sorry. As the world grapples with its ongoing meltdown, pundits predict its demise and Washington weighs its response to the fiasco, the reigning face of the crypto industry, Binance CEO Changpeng Zhao, is unperturbed. He remained defiant in an appearance at the Milken Middle East and Africa Summit this morning, an attitude shared by other industry participants gathered here, who cast the drama of recent days as little more than growing pains. In front of a standing-room only crowd, Zhao defended himself against charges of market manipulation, insisted that his industry was now “healthier” than it had been before he induced the collapse of rival exchange FTX, and said governments should stay in their own lane when it comes to rehabilitating the sector. “Regulation is a key component of it,” he said, “But more importantly, industry players should lead by example.” Binance — already reportedly under investigation by the Justice Department for possible money-laundering violations — risks further scrutiny from Washington for its CEO’s role in the demise of FTX. But Zhao argued that his use of Twitter to broadcast his lack of faith in FTX and its native token exemplified “transparency,” and that the meaning of market manipulation is vague. “All of these things are not very well defined,” he said. When asked, he also declined to say that crypto exchanges should be banned from holding their own tokens as reserves. Among attendees, there were plenty of crypto skeptics from traditional finance who viewed the meltdown as an indictment of the industry. The terms “sham” and “dangerous” were used. But they still crowded into a foyer outside a ballroom at the Rosewood Hotel for their chance to see the “ Darth Vader ” of crypto. Zhao mostly had the room on his side as he responded to his many antagonists. Yesterday, crypto-skeptic economist Nouriel Roubini suggested Emirati authorities should eject Zhao from the country. Today, the Binance CEO drew laughter with his prediction that “very negative” people like Roubini “will generally stay poor.” Zhao also expounded on his relationship with Sam Bankman-Fried, who last week tweeted , “well played; you won” to an unnamed “sparring partner,” an apparent reference to Zhao. “Only a psychopath can write that tweet,” Zhao said, drawing another round of laughter. Following his on-stage interview, Zhao was mobbed by attendees lining up to pose for photos with him and twice declined to answer questions from DFD about the response brewing in Washington. The mood in Abu Dhabi — which is among a group of Gulf States that have sought to foster the digital assets industry — offered a marked contrast to the apocalyptic tenor of recent news, which has the industry bracing for government crackdowns. Zhao is based in neighboring Dubai, and there is no indication that the Emirates will take Roubini’s advice and boot him from the country. Yesterday, Abu Dhabi Global Markets, the local regulator, announced it had granted Binance a new license to offer financial services. Local crypto entrepreneurs largely shared Zhao’s view that the current meltdown is a natural result of free market processes. “I see it as a massive opportunity,” said one. “It’s cleaning up the space.” On the other hand, Paris Hilton — who held forth on the metaverse in an adjoining room during Zhao’s appearance —declined to opine on the meltdown. “I’m just excited to be here at Milken,” she said.
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