Binance CEO cautions against crypto-exchange jitters as FTX’s SBF responds

ambcrypto.com:

Binance CEO Changpeng Zhao has cautioned traders about the infamous practice of jitters taking place on many cryptocurrency exchanges. The remark comes on the heels of many exchanges receiving cease-and-desist letters from the Federal Deposit Insurance Corporation (FDIC).

Called jitters or front running, this phenomenon involves a user’s sell or buy order getting stuck on an exchange, with newer orders moving ahead in the row. Considered illegal in the traditional stock market due to it being a form of insider trading, the practice is not illegal in the cryptocurrency industry since all the information is publicly available on the ledger. 

Not only did the Binance CEO call out the malpractice, but he also claimed to have contacted a few VIP traders on the said platform. Apparently, they told him that they were aware of this practice taking place. He stressed that bad players need to be fought off. 

Now, although Zhao did not name the cryptocurrency exchange in his tweet, many users interpreted it to be targeted at FTX. When one user asked FTX CEO Samuel Bankman-Fried if Zhao’s tweet is targeted at FTX, SBF denied it. He claimed that FTX exchange is always user-agnostic and never changes order priority.

— CZ