Binance CEO Changpeng Zhao, or CZ, and former FTX CEO Sam Bankman-Fried, or SBF, have revealed new details about the failed deal between the exchanges during the FTX liquidity crisis in November.
In a December 9 Twitter thread, CZ se referred Bankman-Fried as a “swindler,” saying Binance exited its FTX position in July 2021 after becoming “increasingly uncomfortable with Alameda/SBF.” According to the Binance CEO, SBF was “unhinged” with the exchange’s exit, a claim that provoked an online response from the ex-CEO of FTX.
Bankman-Fried criticized CZ for its public reprimand of FTX, adding details about trading between exchanges amid FTX’s alleged “liquidity crisis” in November, before the firm filed for bankruptcy.. SBF then said that FTX had reached a “strategic transaction” with CZ, but Binance backed out after reviewing the exchange’s balance sheets. The former FTX CEO claimed that Binance “threatened to walk out at the last minute” without an additional $75 million, accusing CZ of lying about his role in the deal.
“You didn’t even have the right to withdraw as an investor unless we decided to buy you out – much of the tokens/equity were still locked up,” said SBF heading to CZ.
C.Z. answered in the same way:
“Sam, not that it matters now. Nor can it force us to sell if we don’t want to. Plus, we have the veto right to block any other fundraisers you’re doing. I never used it or mentioned it. It was never a competition or fight. Anyone’s won […] Don’t try to tell your friends to focus on us. Focus on yourself. You should have learned it by now.
Lawmakers on the US House Financial Services Committee had previously subpoenaed Bankman-Fried to speak at a hearing on the FTX collapse. Although Bankman-Fried initially said he planned to wait to testify until he had “finished learning and reviewing what happened,” the committee’s leadership threatened a subpoena, prompting the former FTX CEO to say on Twitter that he would be “willing to testify” on December 13.
Although Bankman-Fried appears to have tried to delay his appearances before authorities in connection with the events leading up to FTX’s downfall, he has not been shy about giving interviews to various media outlets. Since FTX Group filed for Chapter 11 on November 11, SBF has repeatedly publicly apologized for its role in the exchange’s collapse.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.