Binance • Cryptocurrency exchange • Bitcoin • Changpeng Zhao

A conflict between two of the top players in the industry sent investors into a tailspin on Tuesday, sending the price of bitcoin and other cryptocurrencies plummeting.

The damage results from a run on FTX, the cryptocurrency exchange established by millionaire crypto entrepreneur Sam Bankman-Fried. The token, FTT, dropped 35% on Tuesday morning, raising concerns about contagion throughout the cryptocurrency industry.

The most well-known digital currency in the world, Bitcoin, dropped by about 6% early on Tuesday to $19,448. The second-most popular cryptocurrency, ether, fell 7%.

When the founder of a competing exchange, Binance, tweeted that the business will liquidate all of its interests in FTT, pressure on FTX started to mount over the weekend. Zhao Changpeng, the company’s founder, declined to elaborate on Binance’s selling decision.

He tweeted, “We have chosen to liquidate any remaining FTT on our books due to recent discoveries that have [came] to light.”

Bankman-Fried tweeted that FTX and its assets are “OK,” dismissing Zhao’s cryptic worries as “false rumours” from a rival.

After reaching a $32 billion valuation, Bankman-FTX Fried’s was apparently considering going public. However, the CEO told Bloomberg earlier this year that the company would hold off until the IPO climate looked more enticing.

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Federal investigators have sought records on Zhao’s Binance, the largest cryptocurrency exchange in the world, according to a September story from Reuters.

According to Reuters, prosecutors ordered Binance to turn over correspondence from Zhao and 12 other individuals regarding the company’s identification of unlawful transactions and solicitation of US clients. Additionally, the Justice Department was looking for any documents that contained instructions to “delete, alter, or erase documents from Binance’s files” or “transfer from the United States.”