{"id":15488,"date":"2022-12-15T05:28:18","date_gmt":"2022-12-15T05:28:18","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/kevin-oleary-tells-us-lawmakers-ftx-failed-because-binance-intentionally-killed-it-featured-bitcoin-news\/"},"modified":"2022-12-15T05:28:18","modified_gmt":"2022-12-15T05:28:18","slug":"kevin-oleary-tells-us-lawmakers-ftx-failed-because-binance-intentionally-killed-it-featured-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/kevin-oleary-tells-us-lawmakers-ftx-failed-because-binance-intentionally-killed-it-featured-bitcoin-news\/","title":{"rendered":"Kevin O’Leary Tells US Lawmakers FTX Failed Because Binance Intentionally Killed It \u2013 Featured Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Shark Tank star Kevin O\u2019Leary, aka Mr. Wonderful, has told U.S. Congress that he believes the collapsed crypto exchange FTX failed because rival Binance intentionally put it out of business. He said former FTX CEO Sam Bankman-Fried (SBF) told him that Binance, which owned a 20% equity stake in FTX, refused to comply with regulators\u2019 requests whenever FTX applied for a license in different jurisdictions.<\/strong><\/p>\n

Kevin O\u2019Leary Shares Why He Thinks FTX Failed With U.S. Senators<\/h2>\n

Shark Tank star Kevin O\u2019Leary shared why he thinks crypto exchange FTX collapsed in a congressional hearing, titled \u201cCrypto Crash: Why the FTX Bubble Burst and the Harm to Consumers,\u201d before the Senate Committee on Banking, Housing, and Urban Affairs on Wednesday.<\/p>\n

Senator Pat Toomey (R-PA) asked O\u2019Leary, \u201cWhy do you believe FTX failed?\u201d<\/p>\n

Mr. Wonderful replied, \u201cI have an opinion. I don\u2019t have the records.\u201d He proceeded to convey what former FTX CEO Sam Bankman-Fried (SBF) told him after the Shark Tank star noticed that funds disappeared from his FTX accounts. O\u2019Leary told Congress:<\/p>\n

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After my accounts were stripped of all of their assets and all of the accounting and trade information, I couldn\u2019t get answers from any of the executives in the firm, so I simply called Sam Bankman-Fried and said, \u2018Where is the money, Sam?\u2019<\/p>\n<\/blockquote>\n

SBF told O\u2019Leary that he \u201cno longer knew\u201d as he has been \u201crefused access to the servers.\u201d O\u2019Leary then told the Senate committee, \u201cThis is a simple case in my mind of \u2018where did the money go?’\u201d<\/p>\n

During their phone conversation, the Shark Tank star asked Bankman-Fried to explain how he used the proceeds from FTX\u2019s assets over the past 24 months. That\u2019s when O\u2019Leary learned about a transaction worth about $2 billion to $3 billion to repurchase FTX shares from Binance.<\/p>\n

\u201cI didn\u2019t know this at the time, but at some point, CZ [Changpeng Zhao], who runs Binance, purchased 20% ownership in Sam Bankman-Fried\u2019s firm for seed stock,\u201d O\u2019Leary told senators. Mr. Wonderful then asked SBF why he had to buy back shares from CZ: \u201cWhat would compel you to do that? Why wouldn\u2019t you keep your assets on the balance sheet?\u201d<\/p>\n

Citing Bankman-Fried, Mr. Wonderful explained that every time FTX applied for a license in different jurisdictions, CZ and Binance \u201cwould not comply with the regulators\u2019 requests to provide the data that would clear [FTX] for a license.\u201d<\/p>\n

O\u2019Leary stressed that FTX spending about $3 billion to buy shares back from Binance \u201cstripped [its] balance sheet of assets.\u201d He detailed: \u201cIn my view, my personal opinion, these two behemoths that own the unrelated market together, and grew these incredible businesses in terms of growth, were at war with each other.\u201d The Shark Tank star concluded:<\/p>\n

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One put the other out of business intentionally. Maybe there\u2019s nothing wrong with that \u2026 but Binance is a massive unregulated global monopoly now. They put FTX out of business<\/p>\n<\/blockquote>\n

\u201cNow, lots of other reasons, I am sure, but that is my personal opinion,\u201d O\u2019Leary clarified without mentioning fraud or any other charges<\/a> brought against FTX and Bankman-Fried by the U.S. government and regulators this week.<\/p>\n

O\u2019Leary recently revealed that FTX paid him $15 million<\/a> to become its spokesperson. Following the collapse of FTX, Mr. Wonderful has maintained that Bankman-Fried is among the best traders<\/a> in the crypto space and he would back him again<\/a> if he has another venture. The Shark Tank star also said he almost secured<\/a> $8 billion to save the troubled crypto exchange from bankruptcy. The former FTX CEO has been arrested and denied bail<\/a> in the Bahamas.<\/p>\n

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\nTags in this story
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Binance<\/a>, ftx<\/a>, FTX Binance<\/a>, FTX CZ<\/a>, kevin o’leary<\/a>, kevin o’leary FTX<\/a>, Kevin O\u2019Leary Binance<\/a>, Kevin O\u2019Leary CZ<\/a>, Kevin O\u2019Leary FTX bankruptcy<\/a>, Kevin O\u2019Leary FTX failed<\/a>, Kevin O\u2019Leary SBF<\/a><\/div>\n<\/div>\n

What do you think about the comments by Kevin O\u2019Leary about FTX and Binance? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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