Cryptocurrency exchanges Binance and FTX were in a state of enmity, so one intentionally forced the other out of business. This was stated by investor and star of the television show Shark Tank Kevin O’Leary before the Committee on Financial Services of the US House of Representatives.
“This is my opinion, I have no evidence. […] Binance has now become an unregulated global monopoly.” he said.
O’Leary could be referring to Binance CEO Changpeng Zhao’s announcement of his intention to get rid of FTT. Utility tokens, together with BUSD for a total of ~$2.1 billion, were the result of the company’s exit from its portfolio investment in FTX.
Zhao’s initiative exacerbated the problems of the Sam Bankman-Freed exchange. The latter filed for bankruptcy in November.
O’Leary and Cato Institute research director Jennifer Schulp, another participant in the hearing, defended cryptocurrencies in general. They noted that user problems stem from the lack of proper regulation of industry participants.
U.S. Senate Banking Committee member Pat Toomey stressed that an outright ban on digital assets would not solve the problems that led to FTX’s collapse.
“In the case of the Bankman-Fried platform, the problem was misuse of customer funds, gross abuse and likely illegal behavior. Some have suggested somehow stopping the spread of cryptocurrencies before legislation is passed. This is a deeply erroneous and unrealistic idea. Without draconian authoritarian policies, digital assets cannot be banned.” he explained.
Earlier, Senators Elizabeth Warren and Roger Wayne Marshall introduced a bill to tighten anti-money laundering measures using cryptocurrencies.
Recall that the new CEO of FTX, John Ray III, accused Bankman-Fried and his team of storing private keys without encryption. In their actions, he saw “old-fashioned waste”, and not sophisticated, carefully planned crimes.
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Cryptocurrency exchanges Binance and FTX were in a state of enmity, so one intentionally forced the other out of business. This was stated by investor and star of the television show Shark Tank Kevin O’Leary before the Committee on Financial Services of the US House of Representatives.
“This is my opinion, I have no evidence. […] Binance has now become an unregulated global monopoly.” he said.
O’Leary could be referring to Binance CEO Changpeng Zhao’s announcement of his intention to get rid of FTT. Utility tokens, together with BUSD for a total of ~$2.1 billion, were the result of the company’s exit from its portfolio investment in FTX.
Zhao’s initiative exacerbated the problems of the Sam Bankman-Freed exchange. The latter filed for bankruptcy in November.
O’Leary and Cato Institute research director Jennifer Schulp, another participant in the hearing, defended cryptocurrencies in general. They noted that user problems stem from the lack of proper regulation of industry participants.
U.S. Senate Banking Committee member Pat Toomey stressed that an outright ban on digital assets would not solve the problems that led to FTX’s collapse.
“In the case of the Bankman-Fried platform, the problem was misuse of customer funds, gross abuse and likely illegal behavior. Some have suggested somehow stopping the spread of cryptocurrencies before legislation is passed. This is a deeply erroneous and unrealistic idea. Without draconian authoritarian policies, digital assets cannot be banned.” he explained.
Earlier, Senators Elizabeth Warren and Roger Wayne Marshall introduced a bill to tighten anti-money laundering measures using cryptocurrencies.
Recall that the new CEO of FTX, John Ray III, accused Bankman-Fried and his team of storing private keys without encryption. In their actions, he saw “old-fashioned waste”, and not sophisticated, carefully planned crimes.
Read Cryplogger bitcoin news in our Telegram – Cryptocurrency news, courses and analytics.
Found a mistake in the text? Select it and press CTRL+ENTER
