British authorities are carrying out investigations to understand what led to the collapse of the FTX exchange. To do this, the members of the British parliamentary committee asked Binance to provide certain internal documents. It appears that they suspect the crypto exchange of not cooperating with them transparently. Bloomberg reported the information on November 17, 2022.
Binance Reportedly Provided Inadequate Evidence
According to an article from Bloomberg, UK lawmakers were unconvinced by Binance’s documents regarding the collapse of FTX. It appears that the CZ exchange disappointed some of the UK lawmakers intervening in the inquiry. Treasury Board member Alison Thewliss said she is dissatisfied with Binance’s cooperation in the investigation.
“It doesn’t really give us the real details of the context.“, she explained. Then she added:I’m sure the committee will ask more questions to get the details of what happened here, as there are wider implications for this collapse and for the crypto industry as a whole.“.
You should know that Binance had to provide internal records outlining the potential market consequences of his ultimately not helping FTX. Among the documents handed over by the exchange to the UK committee is a list of news articles showing a timeline of FTX’s collapse.
CZ’s corporate behavior would impact upcoming regulations
Alison Thewliss explained that Binance’s lack of transparency would impact investigation ongoing committee. According to her, it could even have an influence on the recommendations that the commission will make to the British government for the regulation of cryptos.
Thewliss clarified that the exchange can “hide behind some degree of commercial confidentiality about it“. However, according to her, now is not the time to do so. “Given the scale of things, that’s not really acceptable“, she pointed out.
At the same time, President Harriett Baldwin explained: “We don’t have much ability to push for more than what we received“. Indeed, it turns out that the business of the failed exchange FTX extended well beyond the UK.
Binance was exploring the possibility of acquiring its rival FTX to help it deal with financial difficulties. But, the company finally decided not to try anything, leaving the FTX platform to go bankrupt. Now the UK authorities are investigating the case, but Binance is not being very cooperative.
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