FTX Evidence

Binance submits FTX evidence to UK courts

FTX evidence
Binance Moves Forward with FTX Evidence to be Submitted to UK Courts
  • A tweet by Colin Wu referenced a Bloomberg article about Binance’s decision to provide the UK government with information about its FTT deal.
  • Binance’s decision to sell FTT and the reasoning behind it would also be explained.
  • The information would act as a witness for the investigation team.

Chinese cryptocurrency reporter Colin Wu tweeted on his account Wu Blockchain that Binance had declared it would provide evidence to UK lawmakers about its deal with FTX and its decision to sell FTT.

According to a report from the Bloomberg television network, which Colin Wu tweeted about, Binance’s announcement to submit the details would prove “as a witness in the group’s crypto asset inquiry.”

According to Bloomberg, Binance has agreed to testify as a witness in the United Kingdom’s cryptoasset inquiry. The testimony will focus on the exchange’s decision to sell the Futures Trading Technology token (FTTT) and the conversations that took place between the exchange and FTX during the time the two were in deal talks. https://t.co/wHMp67eNZb

— Wu Blockchain (15 November 2022) via Twitter

Large Withdrawals from Alameda Research

A large number of investors began pulling their money out of Alameda Research after it was discovered the company held large quantities of FTT that raised red flags. Soon after, Binance CEO Changpeng Zhao announced the exchange would be selling off its remaining FTT tokens in light of the new information.

As a result, the value of one FTX coin dropped dramatically as investors sold off their holdings one coin at a time, creating a liquidity crisis from which there was no way to recover.

In the meantime, Zhao stepped in and said Binance had decided to buy FTX, though the exchange could back out of the deal at any time.

Binance, however, pulled out of the transaction on November 10 after hearing allegations of improper handling of customer funds.

Sam Bankman-Fried recently proposed his resignation as CEO of FTX following the company’s decision to declare bankruptcy. Immediately following the occurrence, investors tried to collectively withdraw their funds out of fear, but the platform had already frozen withdrawals.

Therefore, when the company finally did allow transactions, a huge sum was withdrawn, further exacerbating the problematic situation.

Binance FTX evidence

As the fight between FTX and Binance rages on, Binance’s Vice President of European Government Affairs Daniel Trinder has announced that the company will be providing the specifics to the UK Parliament’s Treasury Committee.

This post originally appeared on Coin Edition: Binance to Submit FTX Evidence to UK Courts.

See original on CoinEdition

Disclaimer: This isn’t financial advice; it’s just for education. Crypted Crypto can’t guarantee its accuracy. Every investment and trade carries some risk, so always do your own research. Invest only what you can afford to lose.




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