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Binance disputes the claim made by a UK lawmaker that it purposefully tripped up FTX

Binance denied that it deliberately sought to damage rival crypto exchange FTX in a submission to the U.K. Parliamentary Treasury Committee, but added that the company’s financial irregularities prompted Binance to reduce its exposure.

The chain of events leading up to the FTX meltdown was described in a five-page document that Binance delivered to the Treasury Committee of the Parliament.

Committee chairperson Harriett Baldwin’s direct inquiry regarding whether Binance CEO Changpeng Zhao “brought about the collapse of FTX” was what sparked the release of the Binance document.

According to Binance, the exchange’s financial abnormalities and potential fraud were revealed in financial statements made public by the media, and these irregularities may have existed before the report.

According to Binance, the likely demise of FTX compelled Binance to sell its FTT holdings in order to lessen its exposure to hazardous assets.

According to a Bloomberg report, lawmakers questioned Daniel Trinder, Binance’s vice president of European government affairs, during a hearing held by the Parliament’s Treasury Committee on Monday about Binance’s involvement in the FTX saga, including whether Binance reportedly believed the sale of its FTT holdings would lead to the FTX collapse.

Additionally, US officials are looking into Binance’s role in the demise of FTX. Rep. Patrick McHenry, a Republican from North Carolina, claimed that Congress has looked into Binance’s involvement in the affair. According to a Thursday report by The Block, the subject will be one of the main topics at a congressional hearing the following month.

 

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