Binance Refutes UK Policymaker’s Allegation of a Deliberate Attempt to Sink FTX
Binance, in its submission to the Parliamentary Treasury Committee of the United Kingdom, refuted to have made any deliberate attempt to sink FTX (its competitor crypto platform). However, the exchange mentioned that the financial indiscretions of Binance led the firm to minimize its exposure.
Binance Dismisses US Regulators’ Accusations for Deliberately Causing the FTX Downfall
A five-page document was sent by Binance to the Treasury Committee of the Parliament in which it outlined the series of occasions that became the cause of the collapse experienced by FTX. The document of Binance was provoked due to a question asked by Harriett Baldwin (the chairperson of the committee). She straightly asked if Changpeng Zhao (the CEO of Binance) was responsible for the FTX downfall.
Related: The Downfall of FTX
As per Binance, the exchange responded to the question by saying that the media-based financial statements revealed financial irregularities as well as likely scams. It asserted that the respective things may have preceded the report. As put by Binance, the likely decline of FTX provoked Binance to get its FTT holdings liquidated to minimize its exposure to hazardous assets.
The Treasury Committee of the Parliament conducted a hearing on Monday. There, the policymakers interrogated Daniel Trinder (the vice president of the exchange for European government matters) regarding the role played by Binance in the episode of FTX. The questions specified if Binance seemingly considered that selling its FTT tokens would stimulate the crash of FTX, as per a report from Bloomberg.
US Regulators Look into FTX Crash
The policymakers in the United States are additionally investigating CZ while taking into account the exchange’s responsibility in the respective collapse. Patrick McHenry (a Republican Representative from North Carolina) brought to the front that a substantial amount of congressional scrutiny has been carried out on the FTX saga. Apart from that, the Department of Justice (DoJ) has also reportedly demanded information from the crypto platform regarding its ineffective bailout discussions with the FTX exchange.
Additionally, the financial regulatory agencies in the US are also pursuing information from the executives of the crypto exchange in this regard, as per the reports. The Wall Street Journal and Bloomberg have also published a report while referring to anonymous sources, that the Commodity Futures Trading Commission, Securities and Exchange Commission, and the DOJ are looking into the FTX collapse.
