What Really Happened Between Binance and FTX? CZ Finally Tells His Side

Speaking on the All-In Podcast, former Binance CEO Changpeng Zhao (CZ) provided his account of the relationship with FTX, which began in early 2019 when he met Sam Bankman-Fried (SBF), whose Alameda Research was a major Binance client. Cooperation led to Binance investing 20% equity in FTX in late 2019, involving a token swap of BNB and FTT, with CZ remaining a passive investor who did not request financial statements due to the competing futures businesses.

Tensions arose quickly, as CZ heard reports of SBF criticizing Binance in Washington circles and alleged that FTX recruited Binance staff with higher salaries to poach VIP clients. By early 2021, as FTX raised capital, Binance chose not to exercise its veto rights over future funding rounds and exited its stake in July 2021, a year and a half before FTX's collapse.

CZ rejected claims that Binance exited due to foreknowledge of FTX's issues, stating the decision was based on preferring to compete freely. He confirmed Binance had no visibility into FTX's internal finances, which ultimately led to its failure due to misuse of customer funds to cover Alameda Research losses.

(Source：BeInCrypto)