Shark Tank star Kevin O’Leary aka Mr. Wonderful told US Congress that he believes collapsed cryptocurrency exchange FTX failed because rival Binance deliberately put it out of business. Former FTX CEO Sam Bankman-Fried (SBF) tells him that Binance, which owns a 20% stake in FTX, has refused to comply with regulatory demands each time FTX applied for licenses in different jurisdictions.
Kevin O’Leary shares why he thinks FTX has failed US Senators
Shark Tank star Kevin O’Leary discusses cryptocurrency trading I shared with the congressional hearings why I think FTX has collapsed. Crypto Crash: Why He FTX Bubble Is Bursting And Harming Consumers,” he said before the Senate Committee on Banking, Housing and Urban Affairs on Wednesday.
Senator Pat Toomey (R-PA) asked his O’Leary.
Mr. Wonderful replied. No record. He began telling what former FTX CEO Sam Bankman-Fried (SBF) told him after he noticed funds had disappeared from his FTX account. Said:
After my account was stripped of all assets and all accounting and transaction information, I was unable to get an answer from any of the company’s executives. , I simply called Sam Bankman-Fried and said, “Sam, where’s the money?” O’Leary later told the Senate committee: “This is a simple case in my head of ‘Where did the money go?'” He used earnings from his FTX assets over the past 24 months. At that time, O’Leary learned that he had a deal of about $2 billion to $3 billion from Binance to buy back FTX shares.
“I didn’t know it at the time, but at some point, his CZ [Changpeng Zhao] who runs Binance bought his 20% stake in Sam Bankman-Fried’s company as a seed stake. “I did,” said O’Leary. he told the senator. Wonderful asked SBF why he had to buy back shares from CZ. Why not put assets on the balance sheet?
Quoting Bankman-Fried, Wonderful said that each time FTX applied for licenses in different jurisdictions, “CZ and Binance provided data to clear [FTX]. We will not comply with the demands of the regulatory authorities.” License.
O’Leary stressed that FTX spent about $3 billion to buy back shares from Binance. “In my view, in my personal opinion, these two giants who have owned unrelated markets together and have grown these incredible businesses in terms of growth are at war with each other. The Shark Tank star concluded:
One deliberately put the other out of business. , Binance is now a large unregulated global monopoly.They put FTX out of business
“Well, I’m sure there are many other reasons, but it’s That’s my personal opinion,” O’Leary said in a statement to FTX and Bankman-Fried this week by the U.S. government and regulators.
O’Leary recently revealed that he paid $15 million to become a spokesperson for FTX. After the fall of FTX, Wonderful claims that Bankman-Fried is one of the best traders in the cryptocurrency industry and would back him again if he had another venture. The former FTX CEO has been arrested in the Bahamas and denied bail.
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