Binance CEO CZ: FTX Data Found Faulty During Takeover Discussions

Anvesh Reddy
November 17, 2022
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Binance CEO CZ Latest Comments: CZ said in an interview with CNBC that data provided by FTX seemed unreliable. During the discussion around Binance’s potential takeover of FTX, fund misappropriation was evident, he said. After announcing that his company was considering the acquisition of FTX, the Binance team eventually pulled out of the deal. Binance had a that time blamed it on errors in due diligence process for withdrawing from the takeover process.

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The Takeover Attempts

Prior to that, Binance signed a non-binding letter of intent (LOI) with FTX CEO Sam Bankman-Fried with an intention to fully acquire FTX.com. However, the LOI had a clause about Binance’s discretion to pull out of the deal if it wished. The crypto market turned even more bearish following Binance’s withdrawal, making the already bear market much worse.

CZ said that the misappropriation of user funds was evident from the data FTX had during the takeover talks. The Sam Bankman-Fried crypto empire collapsed apparently due to the diversion of funds between FTX and Alameda Research. CZ said the FTX team was clearly lying to its users, the investors, and employees. The Binance CEO made the latest comments in a CNBC interview:

“It was pretty clear pretty soon that there was misappropriation of user funds. At that point, it was clear he was lying to his users, his investors, and his employees. At that point, whatever data was in the data room we couldn’t trust anymore.”

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Crypto Market Impact

The FTX Token (FTT) suffered massively with a decline by more than 95% in the space of last 10 days. As of writing, FTT price stands at $1.63, up 1.00% in the last 24 hours, according to price tracking platform CoinMarketCap. This is in comparison with the $25 range it maintained steadily before the FTX meltdown came into light. Meanwhile, the Bitcoin (BTC) price is trading at $16,581, down 0.23% in the last 24 hours.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at [email protected] or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.