Binance Will Testify Against FTX in Europe, Bloomberg Says

Members of Binance’s European division will testify against the FTX exchange and provide investigators with evidence showing the reasons why Binance failed to purchase FTX. The information was revealed by Bloomberg on Tuesday (15).

Daniel Trinder, head of government affairs at Binance in Europe, is responsible for due diligence with authorities.

When Alameda Research was found to be insolvent, FTX unsuccessfully tried to rescue the company from its group. Maneuvers by the executives sent money between the companies, but eventually they all went bankrupt.

When he became aware of the impossibility of buying back his company, Sam Bankman-Fried called his competitor CZ, CEO of Binance.

CZ asked for help in dealing with the situation and offered to buy FTX.

Why will Binance testify against FTX in Europe?

The hopes of FTX customers were sparked by this hypothesis, but in less than 24 hours, Binance pulled back. CZ said there were no conditions to buy the competitor and said the situation was more serious than he had thought.

And it’s data from that trade that European officials want access to, Binance confirmed to Bloomberg.

Binance will need to clarify the trade and let you know if it knew its main competitor was going to end. Also, the announcement of the sale of the FTX tokens (FTT) will have to be clarified.

The world’s largest brokerage by volume has pledged to clarify the whole situation and provide evidence to the Treasury Committee of the UK Parliament.

The president is waiting for the evidence to assess the nebulous situation. The documents should point to the scenario that Binance was unaware that FTX was insolvent and had no intention of disappearing.

Was Binance Responsible for the Competitor’s Fall?

When FTX collapsed, many investors in the cryptocurrency market blamed Binance’s intervention in the case. According to rumors, CZ knew that his competitor might fall and only delivered the “final blow”.

Publicly, Binance’s CEO has denied any involvement in splitting up FTX, a company he was a partner of from the start.

Last Monday (14), CZ even announced a rescue fund for companies in the cryptocurrency market. Its purpose is to help companies that go bankrupt and distance themselves from their image of villainy to competitors.

“To further mitigate the negative ripple effects of FTX, Binance is forming an industry recovery fund to help projects that are strong but in liquidity crisis. More details coming soon. In the meantime, contact Binance Labs if you think you qualify. Also welcome other players from the industry with cash who want to co-invest. Cryptocurrencies are not going away. We’re still here. Let’s rebuild.”

Source: Live Coins