FTX’s recent collapse was one of the biggest events in the crypto industry’s history. Millions of people lost their savings, and Sam Bankman was also recently arrested in the Bahamas. The entire situation has again brought the feasibility of the crypto industry to the limelight. And even though we all think it is FTX’s fault and Sam has defrauded us, Kevin O’Leary says, “Binance Knowingly put FTX out of business.”
Kevin’s statement on FTX and Binance
The shark tank entrepreneur recently appeared on CNBC and talked about his partnership with FTX. He was reportedly paid $15 million for the same. Kevin has lost a lot in the collapse of FTX. He not only didn’t get the $15 million, but his equity in FTX, which was worth around $1 million, is also worth nothing anymore. This has definitely been one of Kevin’s poor investment decisions, but he feels that the fall of the FTX was orchestrated.
In the testimony that Kevin gave at the Senate, he said that reason behind FTX’s collapse was Binance. Kevin did say that all he was saying was his opinion and that he didn’t have any records to prove his point. But he feels that FTX and Binance were rivals that owned the entire unregulated market. So, to get market share, Binance intentionally put FTX out of business, said Kevin.
Right now, Binance is a monopoly in the crypto markets, which gives them really big control over the markets.
What do we know about FTX’s collapse?
Hearing from John Ray, the current CEO of the company, it is evident that the primary reason why FTX went out of business was the inappropriate use of customer funds. They were reportedly used by Alameda research for margin trading, and that led to a lot of losses where funds were lost. At the same time, many executives and individuals using customer funds were issued loans. FTX also went on an investment spree during the first half of this year, where he spent billions of dollars on companies that might not have been worth even half the price.
What are your thoughts as Kevin says Binance knowingly put FTX out of business? Or do you think it was all FTX’s fault? Let us know in the comments below. And if you found our content informative, share it with your family and friends.
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