Binance 'put FTX out of business' — Kevin O'Leary
The collapse of FTX was triggered by Binance, claimed investor Kevin O'Leary on Dec. 14 speaking at the United States Senate committee hearing about the crypto exchange meltdown. O'Leary, who was a paid spokesperson for FTX, provided details about conversations with Sam Bankman-Fried in the days before FTX filed for bankruptcy.
During his testimony, O'Leary said he had questioned SBF regarding how customer funds were used in the past 24 months and was told that almost $3 billion were used to repurchase shares of FTX owned by Binance.
When asked by Senator Pattrick Toomey why FTX failed, O'Leary replied, "I have an opinion. I don't have the records," before revealing his view that the heads of Binance and FTX were at war.
Related: FTX hearing: US lawmakers criticize use of Quickbooks, creepy dough and ‘conscientious stupidity’
O'Leary said that regulation was at the core of the silent war between the heads of the two crypto exchanges. Binance and Changpeng "CZ" Zhao had to comply with regulators' requests and compliance standards in different jurisdictions as shareholders with nearly 20% of the FTX.
The share purchases hurt FTX's balance sheet, said O'Leary, and Zhao's decision to liquidate Binance's position on FTX token (FTT) at the beginning of November citing “recent revelations that have came to light,” and “post-exit risk management" reasons, was intended to push down the token's price. O'Leary stated:
O'Leary also spoke out in favor of a cryptocurrency regulatory framework during his speech:
As a paid spokesperson for FTX, O'Leary was paid nearly $15 million for his services. He reportedly lost over $10 million in tokens held at FTX wallets due to collapse.
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