“The collapse of FTX was caused by Binance,” investor Kevin O’Leary said Dec. 14 in talks with the US Senate committee. Reflecting on the exchange’s collapse, O’Leary, a paid spokesperson for FTX, detailed a conversation with Sam Bankman-Fried. In the days before FTX filed for bankruptcy,
During his testimony, O’Leary said he had asked the SBF about how clients’ money had been spent over the past 24 months. And was told that nearly $3 billion had been spent to buy back shares of Binance-owned FTX.
When asked by Senator Pattrick Toomey why FTX failed, O’Leary replied that, in his view, the head of Binance and FTX are at war.
O’Leary said regulation is at the heart of a silent war between the heads of the two crypto exchanges, with Binance and Changpeng “CZ” Zhao having to comply with regulatory requests and compliance standards in different countries. As a shareholder with almost 20% FTX
“Share buybacks have affected FTX’s balance sheet,” O’Leary said, and Zhao’s decision to sell Binance’s FTT holdings in early November, citing “risk management,” was also a key reason for the move. Press the price of the token.
O’Leary also spoke about the regulatory framework. cryptocurrency During his speech: “Inexperienced or incompetent managers, weak business models, and unregulated operators. I hope these activities will bring a focus to the implementation of domestic regulations that have been stalled for years. Including other countries that have already implemented such policies. and is now attracting both investment capital and highly skilled personnel. in the united states We are lagging behind and losing our leadership position.”
O’Leary was paid nearly $15 million as an FTX spokesperson, and he reportedly lost over $10 million of tokens held in his FTX wallet due to the collapse.
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