FTX's Sam Bankman-Fried Tells Binance CZ "You Won," Here's What Happened

Fri, 12/09/2022 - 15:29
Tomiwabold Olajide
FTX's Sam Bankman-Fried and Binance CZ trade words on social media
Cover image via www.youtube.com
Read U.TODAY on
Google News

Last month, Sam Bankman-Fried's FTX exchange imploded. To understand the magnitude of the implosion, you should know that, earlier this year, FTX had been valued at $32 billion by private investors.

When the issue of FTX's liquidity crunch came to light, Bankman-Fried was said to be scrambling to raise money from venture capitalists and other investors before he approached Binance. The CEO of Binance, Chanpeng Zhao or CZ, initially agreed to step in, but his company quickly changed course, citing reports of "mishandled customer funds" and U.S. agency investigations.

A month after the incident, disgraced FTX founder Sam Bankman-Fried, also known as SBF, is revisiting the matter following tweets made by CZ about Shark Tank's Kevin O'Leary's endorsement of FTX.

Zhao slammed "Mr. Wonderful," Kevin O'Leary, claiming that Binance does its due diligence even after investing.

The Binance CEO also stated that as an early investor in FTX, it became increasingly uncomfortable with Alameda and SBF and initiated the exit process more than 1.5 years ago.

In response to Zhao's tweets, Sam Bankman-Fried said, "You won, @cz_binance."

SBF said that the conversations for the buyout were initiated because it was essential at the time. He lamented that, while he was frustrated with CZ's "negotiation" tactics, he still chose to do it anyway.

The FTX founder added, "You threatened to walk at the last minute if we didn't kick in an extra $75 million. We did it anyway because this just made us feel more confident we didn't want Binance on our cap table. But again, none of this is necessary. You won. Why are you lying about this now?"

Zhao responded to SBF saying that it did not matter as it was never a competition or fight, and therefore no one won.

SBF, in a separate tweet, said he was willing to testify before the House committee to shed light on the FTX implosion.

About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.