The quarrel amid the CEOs of FTX and Binance, Sam Bankman-Fried and Changpeng Zhao, was devastating for the entire market. Now, new reports reveal that the CEO of FTX sought bailout funds from different sources before signing with Binance.
Unknown notes sent by Binance CEO to his employees appeared
According to the Financial Times report, Binance CEO CZ shared his concerns with his group before buying the rival exchange. In a memo to his employees, he stated that the acquisition could draw more control over the exchanges. According to CZ, this will pose a major obstacle in front of the breakthrough exchange from obtaining licenses from different countries.
CZ also told its employees that it was ‘not a win’ to buy out its biggest competitors. According to the Financial Times report, CZ said the following after speaking with Sam Bankman-Fried:
Before SBF called me, I knew very little about the internal situation in FTX. I could compare with ours to assume their income, but that would be inconsistent. I was surprised when he wanted to talk. My first reaction was that he wanted to do an OTC settlement. But here we are.
According to sources, CZ had no plans to buy out its embattled competitor. As stated in the above note, according to Binance CEO, this attack will open up the exchange with the regulators:
Regulators will now watch us more closely and be suspicious of us. It will be harder to get a license from other countries in the world. All that happened caused a great loss of faith. We actually had no plans to buy FTX.
Sam Bankman-Fried seeks help from Wall Street and Silicon Valley before CZ
According to Semafor’s report, FTX CEO requested a $1 billion bailout from Wall Street and Silicon Valley before asking CZ for help with liquidity. FTX’s liquidity crisis came especially after Binance announced on Sunday that it would sell its FTT tokens amid concerns that Alameda would go bankrupt. According to the argument, SBF first turned to Wall Street and Silicon Valley to find solutions to the crisis fueled by Binance. He demanded a rescue package of 1 billion dollars from here.
Will Binance sell its FTT Tokens?
Koindeks.com As you follow, CZ, referring to a Coindesk report, shared that Alameda’s balance sheet is only supported by FTT tokens, which may cause a liquidity crisis like LUNA-UST, and decided to sell the 2.1 billion FTT Token held by the exchange. . Talking to SBF later, CZ said that when he learned the details of the incident, he ordered to stop FTT sales.
Despite everything, the price of FTT is struggling to recover. Even SBF’s announcement on Twitter that they agreed with Binance was not enough to stop the decline. FTT is currently trading at $4.8. It has lost around 70% in value compared to the last 24 hours. Thus, it lost over 80% with a four-day series of red candles.