On the specifics of FTX’s takeover by Binance, Changpeng Zhao and the former CEO of FTX, Sam Bankman-Fried differ.
Sam Bankman-Fried and Changpeng “CZ” Zhao, CEO of Binance, are engaged in a verbal spat on social media over Binance’s investment in FTX in 2021 just hours after Sam confirmed he would testify at the anticipated hearing dated for November 13.
Sam now claims Binance’s CEO asked for an extra $75 million in the last minute, threatening to walk out of the deal if they didn’t oblige. The failure of Binance to buy FTX was the beginning of the latter’s problems.
He is responding to CZ’s claim that he was a fraudster.
Sam posted:
You threatened to walk at the last minute if we didn't kick in an extra ~$75m.
We did it anyway because this just made us feel more confident we didn't want Binance on our cap table.
But again, none of this is necessary. You won. Why are you lying about this now?
— SBF (@SBF_FTX) December 9, 2022
The conflict arose when Binance decided to sell its interest in FTX. According to Bankman-Fried, CZ threatened to cancel the agreement if FTX didn’t cough up an additional $75 million.
CZ said that once Binance chose to stop investing, Bankman-Fried became “unhinged” and unleashed a string of abusive rants. However, according to Sam, none of that was necessary because he believes CZ has won. Sam accuses CZ of lying while adding that CZ threatened to quit at the last minute if they didn’t chip in an extra $75m.
“We did it nonetheless because this simply made us feel more secure.” He added.
Following what is regarded as a Lehman Brothers moment for crypto, Bankman-Fried resigned when FTX ultimately filed for bankruptcy last month, losing billions of dollars in customer cash.
In a Dec. 6 interview with Yahoo Finance, Kevin O’Leary of Shark Tank urged restraint in the wake of FTX’s demise. According to O’Leary, Sam “SBF” Bankman-Fried, the exchange’s former CEO, should be treated as innocent until proof of his guilt is revealed.
O’Leary demanded that FTX undergo an audit to see where the exchange’s cash went so that investors might recover their money. SBF gave multiple interviews between November 30 and December 1, during which he asserted that he was not guilty of fraud. This caused outrage in the cryptocurrency community. But in this latest interview, O’Leary defended SBF, asserting that he is “innocent until proven guilty.”Â
He explained:
“I am of the mindset and the people who think you are innocent unless proven guilty. And I need the details. Therefore, if you tell me that you did or did not do anything, I will trust you until I discover that it is untrue.”
Due to this recent development, Sam is expected to continue making headlines with many anticipating to what Binance’s reply to Sam’s latest tweet will be.
