Did Binance Voluntarily Cause FTX’s Bankruptcy?

British authorities are conducting investigations to understand what led to the collapse of the FTX exchange. To do this, members of the British parliamentary committee asked Binance to provide some internal documents. It seems that they suspect that the crypto exchange does not cooperate with them transparently. Bloomberg reported the information on November 17, 2022.

Binance reportedly provided insufficient evidence

According to an article by Bloomberg, UK lawmakers were unconvinced by Binance’s filings regarding the FTX collapse. It appears that the CZ exchange disappointed some of the UK lawmakers who intervened in the investigation. Treasurer Board member Alison Thewliss said she is unhappy with Binance’s cooperation in the investigation.

It doesn’t really give us the real details of the context.“, she explained. Then she added:I’m sure the committee will ask more questions to get the details of what happened here, as it has broader implications for this collapse and for the crypto industry as a whole.“.

Bloomberg article

You should know that Binance had to offer internal data describing the possible market consequences of not ultimately helping FTX. Among the documents submitted by the exchange to the UK committee is a list of news articles showing a timeline of FTX’s collapse.

CZ’s corporate behavior would influence future regulations

Alison Thewliss explained this Binance’s lack of transparency would affect the investigation ongoing commission. According to her, it may also have an impact on the recommendations that the commission will make to the British government on crypto regulation.

Thewliss clarified that the exchange could “hide behind some commercial confidentiality for it“. However, according to her, now is not the time to do this. “Given the scale of things, this is not really acceptable“, she emphasized.

At the same time, President Harriett Baldwin explained:We don’t have much ability to push for more than we gotIndeed, it turns out that the business of the failed FTX exchange extended far beyond the UK.

Binance was exploring the possibility of buying its rival FTX to help it deal with financial difficulties. But the company finally decided not to try anything, leaving the FTX platform bankruptcy. Now the UK authorities are investigating the case, but Binance is not very cooperative.

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Avatar Luc Jose Adjinacou
Luc Jose Adjinacou

No less than it dampened my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only increased my enthusiasm. Therefore I decided to study and understand the blockchain and its many uses and transmit with my pen information about this ecosystem.

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