Following comments by Changpeng Zhao, CEO of Binance, about FTX’s management style by Sam Bankman-Fried, the latter reacted aggressively. Earlier, Changpeng Zhao strongly criticized Kevin O’Leary for defending Sam Bankman-Fried in a recent interview.
He claimed that FTX was involved in embezzling customer funds and mentioned that Binance pulled out of FTX investments about 1.5 years ago. CZ said that SBF is threatening to make extraordinary efforts to remove Binance from its company.
Sam Bankman-Fried: No need to lie
You threatened to leave at the last minute if we didn’t kick in an extra ~$75M. in.
We did it anyway because this just made us feel more confident that we wouldn’t have Binance on our cap table.
But again, none of this is necessary. You won. Why are you lying about this now?
— SBF (@SBF_FTX) 9 December 2022
In its response to Changpeng Zhao’s claims, SBF said Binance’s CEO lied about the takeover situation. he tweeted said there was no need for CZ to lie about it now. SBF claimed that Changpeng Zhao threatened to pull out of the deal at the last minute with conditions. With these actions, the FTX team was more convinced that they would not have Binance on their list of investors. Interestingly, SBF mentioned “You won”, referring to the CEO of Binance.
“You won, CZ. No need to lie now about redemption. You threatened to leave at the last minute if we didn’t give another $75 million.”
Reacting to the turn of events, Changpeng Zhao said that “nobody won“, saying that this whole situation was not a contest.
Sam, not that it matters now. Nor can you force us to sell if we don’t want to. We also have the veto power to block any further fundraising you were doing. Never used or mentioned it. It was never a competition or a fight. Nobody won. 1/2
— CZ 🔶 Binance (@cz_binance) 9 December 2022
Meanwhile, Sam Bankman-Fried has expressed his willingness to testify before the US House of Representatives Financial Services Committee next week. Although he previously said he was unlikely to testify on December 13, he has now said he will testify despite limitations on facts and information. In other news, Terra co-founder Do Kwon blamed Sam Bankman-Fried and Genesis for the Terra-LUNA crisis.