Asked as part of an investigation by various UK lawmakers, a spokesperson for Binance claimed that the sale of FTT tokens was in no way intended to bring FTX down. In addition, Binance will have to transmit the elements in its possession concerning the canceled takeover of FTX so that as much data as possible is made public.
Binance will deliver a lot of information
Daniel TrinderBinance’s Vice President of Government Affairs for the European Zone, was questioned by various UK lawmakers regarding the company’s decision to suddenly sell all of its FTT tokens in reserve.
🔴 LIVE – Follow the FTX deal in real time
Questioned as a witness in the investigation, Mr. Trinder assured that this sale had no intention of causing the collapse of FTX. The question appears relevant, since when we look back on events, it appears that the massive sale of FTT tokens by Binance was the trigger for the panic in the market.
Harriet Baldwinthe chair of the committee, requested that Binance transmits all the elements in its possession concerning the aborted takeover of FTXincluding internal correspondence and various files relating to the sale of FTT and the due diligence process carried out.
“ Binance will provide the documents it has agreed to share, replied a Binance spokesperson.
The chairman of the committee nevertheless asserts that the sale of FTT operated by Binance is at least partly responsible for the situation we find ourselves in today :
” [Le procédé de diligence raisonnable sur FTX] raised a problem that triggered a chain of events that led to the collapse of FTX. […] You have to admit that you were a player in this sequence of events. »
According to the statements of other witnesses present during this exchange, the repercussions of this case could set the cryptocurrency industry back years. Indeed, beyond the absolutely considerable financial damage alone, investor confidence is undoubtedly at an all-time low.
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Source: Bloomberg
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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