If you have a computer, TV, phone, or screen, then you have more than likely come across the debacle that is FTX—but have you heard of how Binance was the catalyst behind the fall of the crypto Rome?
You are going to want and sit down for this one, reader because we are going to get into the nitty-gritty behind how Binance orchestrated one of the greatest takedowns of a competitor in financial history.
Let’s go back to mid-December when Shark Tank and FTX investor Kevin O’Leary sat down before Congress to testify on how he believes (along with a litany of other investors) that it was CZ, the CEO of Binance, that organized the cards in such a way that would lead to the ultimate demise of FTX.
During a heated moment between Kevin O’Leary and Senator Pat Toomey, Kevin explicitly calls out CZ and Binance.
Comments from Shark Tank Investor Kevin O’Leary
“I have an opinion, I don’t have the records. Here it is… These two behemoths that own the unregulated markets together and ruled these incredible businesses in terms of growth were at war with each other. And one put the other out of business intentionally.”
He added that while there may be nothing wrong with that but noted that “Binance is a massive global monopoly now.”
In his planned testimony before the committee, O’Leary said he has applied for membership on the FTX creditors’ committee.
Binance CEO Changpeng Zhao previously criticized O’Leary’s penchant for defending Sam Bankman-Fried. According to CZ, the shark tank investor was aligning with a fraudster because of $15 million.
However, O’Leary clapped back, insisting that Binance’s decision to sell its $550 million worth of FTT tokens played a role in the eventual demise of FTX.
O’Leary said, “you ask anybody why Sam Bankman-Fried or the company was forced into bankruptcy? It was jamming down the last half a billion that gave him no option.”
How Binance’s Moves Affected FTX
On Nov. 6, Binance revealed it was going to liquidate its FTT holdings. Former Alameda CEO Caroline Ellison offered to buy each FTT token at $22 apiece. However, the events culminated in the eventual demise of SBF’s crypto empire. And what we know of FTX and SBF today.
Kevin O’Leary further suggested that the $2.1 billion FTX paid to Binance to buy out its shares could be subject to a clawback.
He said if he were on the credit committee, he would look forward to the $2.1 billion clawback because every shareholder has to have an answer.
Meanwhile, he noted that the payment might not be subject to the “Madoff-style clawback.”
Binance CEO Doesn’t Seem Worried
Binance CEO CZ reportedly dismissed concerns about a potential clawback from the FTX bankruptcy proceedings. However, CZ only gave an evasive answer of “we’re financially ok.”
His response generated a lot of FUD among the crypto community on Twitter, with one member asking him a Yes/No question on his firm’s solvency.
Binance has processed billions in withdrawals over the past week as the community becomes increasingly concerned over the solvency of several centralized exchanges.
What do you think, reader? Should we be pointing the finger at Binance, or is the responsibility for the collapse of FTX solely in the hands of its founder, Sam Bankman-Fried?
We may not know every detail yet, but there is no doubt that things are continuously coming to light, and that is just what the crypto markets need right now: transparency. Let’s hope that this will be the start of a brighter, clear crypto community.
