The accusations against SBF, the former CEO of the crypto exchange FTX, continue to make headlines. And one thing is certain, the matter will not calm down anytime soon, especially not when Michael Lewis adds fuel to the fire. According to his statements, it seems that the relationship between Binance and FTX has never been good. And why ?
CZ allegedly refused to invest in the creation of FTX
The crypto ecosystem is full of many scandals. But when it mainly concerns two of the biggest investors in the sector, there is no doubt that attention is created. Since the collapse of FTX, many cryptocurrency enthusiasts are convinced that Changpeng Zhao is not completely blank in this story.
However, if some believe there is animosity between the two, the reasons may well surprise them. According to a Book’s extract by Michael Lewis Going Infinite: The rise and fall of a new tycoonit seems that CZ would have refused Sam Bankman-fried’s request to invest $40 million for the creation of his crypto exchange in 2019.
In fact, the entrepreneur proposed to the CEO of Binance to put his funds in a futures exchange with zero risk. This assumes protection in the event of bad trades with high leverage. With the inevitable volatility of crypto markets, the project seemed to fall from the sky.
However, CZ preferred to pass. It seems they had a very different vision at the time. Where Binance wanted to focus on retail customers, FTX aimed more at institutional investors. A response that would not have pleased the man whose trial begins in New York. But this wouldn’t be the only time Binance turned its back on FTX.
CZ, the brain behind the SBF crypto exchange?
Binance is one of the pillars of the crypto sector. Although his centralized side is sometimes controversial, the fact remains that CZ seems to have a discerning eye. A few years after refusing to invest $40 million in the FTX project, the crypto investor also reportedly refused to save the platform in 2022.
As the fall loomed on the horizon, the businessman refused SBF’s proposal to acquire his exchange. With the trial of Sam Bankman-Fried, rumors about Changpeng Zhao’s participation in the fall of FTX have resurfaced.
FTX is doing everything to get back on its feet, while its former CEO Sam Bankman-Fried must face American justice. While the investor is accused of numerous crimes, an extract from Michael Lewis’ book reignites the issue. Taking into account that he is a defender of the exchange, how will the market react to this new information?
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