VOT Research Desk
Market Analytics and Considerations
After being questioned by MPs in the U.K., Binance, the largest cryptocurrency exchange in the worldwide by volumes, disputed it intended to purposefully damage rival FTX.
After pledging to do so at a hearing on Monday, the exchange delivered a five-page document explaining the series of events that led to the FTX collapse on Wednesday to the Parliament’s Treasury Committee.
According to the document, describing how the majority of Alameda Research’s assets were made up of FTT, FTX’s own coin, served as the initial stimulus. A trade company associated with FTX is called Alameda. And since, FTX has declared bankruptcy.
The financial problems and potential fraud that were first highlighted in the CoinDesk story on November 2 were the causes of FTX’s collapse, as is evident from the information above, according to the paper.
Following the demise of FTX, the Treasury Committee convened a hearing on Monday to question representatives from cryptocurrency companies. When the committee’s chairwoman, MP Harriett Baldwin, questioned whether Binance CEO Changpeng Zhao “brought about the collapse of FTX,” Daniel Tinder, the vice president of governmental affairs for Europe, proposed to submit the document.
Baldwin argued that it must have been obvious when the decision was made that FTX, one of your main competitors, would certainly collapse.
