Binance 'put FTX out of business' — Kevin O'Leary

The illness of FTX was triggered by Binance, claimed capitalist Kevin O'Leary connected Dec. 14 speaking astatine the United States Senate committee proceeding astir the crypto speech meltdown. O'Leary, who was a paid spokesperson for FTX, provided details astir conversations with Sam Bankman-Fried successful the days earlier FTX filed for bankruptcy. 

During his testimony, O'Leary said helium had questioned SBF regarding however lawsuit funds were utilized successful the past 24 months and was told that astir $3 cardinal were utilized to repurchase shares of FTX owned by Binance.

When asked by Senator Pattrick Toomey wherefore FTX failed, O'Leary replied, "I person an opinion. I don't person the records," earlier revealing his presumption that the heads of Binance and FTX were astatine war.

Related: FTX hearing: US lawmakers knock usage of Quickbooks, creepy dough and ‘conscientious stupidity’

O'Leary said that regularisation was astatine the halfway of the soundless warfare betwixt the heads of the 2 crypto exchanges. Binance and Changpeng "CZ" Zhao had to comply with regulators' requests and compliance standards successful antithetic jurisdictions arsenic shareholders with astir 20% of the FTX.

"Apparently, according to Sam Bankman-Fried, CZ would not comply with regulators' requests successful antithetic jurisdictions to supply the information that would wide them [FTX] for a licence […] The lone enactment the absorption and Sam Bankman-Fried had was to bargain him retired astatine an bonzer valuation adjacent to $32 billion."

The stock purchases wounded FTX's equilibrium sheet, said O'Leary, and Zhao's determination to liquidate Binance's presumption connected FTX token (FTT) astatine the opening of November citing “recent revelations that person came to light,” and “post-exit hazard management" reasons, was intended to propulsion down the token's price. O'Leary stated: 

"In my view, my idiosyncratic opinion, these 2 [...] successful an unregulated marketplace [...] with this unthinkable concern successful presumption of maturation were astatine warfare with each other, and 1 enactment the different retired of business, intentionally. Now, possibly determination is thing incorrect with that, possibly determination is thing incorrect with emotion and war, but Binance is simply a monolithic unregulated planetary monopoly now, and they enactment FTX retired of business."

O'Leary besides spoke retired successful favour of a cryptocurrency regulatory model during his speech:

“This nascent manufacture is culling its herd. Going oregon gone are the inexperienced oregon incompetent managers, anemic concern models and rogue unregulated operators. Hopefully, these highly publicized events volition enactment renewed absorption connected implementing home regularisation that has been stalled for years. Other jurisdictions person already implemented specified policies and are present attracting some concern superior and highly skilled talent. In the U.S., we are falling down and losing our enactment position.”

As a paid spokesperson for FTX, O'Leary was paid astir $15 cardinal for his services. He reportedly mislaid implicit $10 million successful tokens held astatine FTX wallets owed to collapse.