Kevin O’Leary Blames Binance For Deliberately Causing FTX Collapse In Senate Testimony


Businesses and governments are still scratching their heads over the sudden collapse of FTX, Sam Bankman-Fried’s crypto empire.

The crypto community and regulators are wondering what led to the abrupt downfall of the cryptocurrency exchange, which just this February was valued at $32 billion.

During questioning at a U.S. Senate panel hearing on December 14 on FTX’s failure, Shark Tank investor Kevin O’Leary proposed a supportive hypothesis that was clearly biased towards Bankman-Fried: Binance was the culprit.

“Mr. Wonderful” O’Leary, formerly the mouthpiece for the FTX, was heavily invested in the disgraced crypto exchange.

Kevin O'Leary. Image: Forbes

Binance, The Culprit Behind FTX Crash?

Sen. Pat Toomey asked O’Leary during testimony why he believed FTX failed, and O’Leary responded that the exchange and its biggest rival Binance “were at war with each other and one intentionally put the other out of business,” as quoted by Forbes.  

As he delivered his statements, O’Leary also claimed that he questioned Bankman-Fried about the usage of customer funds in the last two years and was informed that about $3 billion was utilized to repurchase Binance-owned FTX shares.

O’Leary also provided his own theory for why FTX went belly up last month, which sounded oddly similar to SBF’s, but steered clear of the alleged deceptive business methodologies and misappropriation of billions of dollars in client funds that resulted in eight federal criminal charges against the former CEO this week.

BTC total market cap at $339 billion | Chart:

Kevin O’Leary, The SBF ‘Protector?’

Previously, Binance CEO Changpeng Zhao blasted O’Leary’s tendency to protect Bankman-Fried. CZ stated that O’Leary, who was a paid spokesman for FTX, was “aligning with a fraudster” because of $15 million.

Meanwhile, in a civil complaint, the U.S. Securities and Exchange Commission alleged that SBF orchestrated “a massive, years-long fraud,” funneling billions of dollars of the exchange’s customer funds “for his own personal benefit and to help grow his crypto empire,” The Street disclosed in a report.

Image: Boxmining

For her part, Republican Sen. Cynthia Lummis – who is labeled as Capitol Hill’s “Crypto Queen” – told the hearing that “FTX is good old fashioned fraud.”

At the request of U.S. officials, the 30-year-old SBF with the wild puff of hair was arrested on December 12 in the Bahamas, where he resides. At his arraignment hearing the next day, the Bahamian court denied him bail.

O’Leary reportedly lost approximately $10 million in FTX tokens owing to the exchange’s meltdown.

Bankman-Fried told Forbes that CZ “played” him and acted in bad faith hours before his arrest.

#Kevin #OLeary #Blames #Binance #Deliberately #Causing #FTX #Collapse #Senate #Testimony


Related Posts

Sequoia Capital, Paradigm among VCs facing ‘tricky’ FTX investor lawsuit

[ad_1] Users of bankrupt crypto exchange FTX have reportedly taken aim at financiers who promoted the platform suggesting their efforts added an “air of legitimacy” to the…

IND vs AUS: Shreyas Iyer declared fit for the second Test; Jasprit Bumrah to miss the ODIs as well

[ad_1] India’s star batter Shreyas Iyer who did not play the first Test between India and Australia due to a lower back injury, has been declared fit…

Sen. Warren vows reintroduction of AML bill that extends to DAOs and DeFi

[ad_1] A bi-partisan anti-money laundering (AML) bill that covers “decentralized entities” such as decentralized finance (DeFi) protocols and DAOs will soon be reintroduced to Congress, according to…

IND vs AUS: “I Had A Tough Time, Dale Steyn And Morne Morkel Were At Their Peak”

[ad_1] Indian batter Cheteshwar Pujara will play his 100th Test match against Australia at the Arun Jaitley Stadium in Delhi starting Friday, February 17. And ahead of…

Dogecoin, Shiba Inu Soar As Elon Musk Announces Twitter CEO

[ad_1] Elon Musk, who is still searching for a new Twitter CEO, jokingly introduced a dog as Twitter’s new CEO, sending the prices of Dogecoin, Shiba Inu…

Chetan Sharma’s sting operation: Here are the startling revelations made by Team India’s chief selector

[ad_1] Former India cricketer and current chief of the BCCI selection committee Chetan Sharma has made some shocking revelations in a massive sting operation conducted by Zee…

Leave a Reply

Your email address will not be published. Required fields are marked *