SBF Explains FTX Exchange’s Plans to be Sold to Binance! According to court statements pertaining to the bankruptcy of cryptocurrency exchange FTX, the company’s CEO, Sam Bankman-Fried, testified before U.S. jurisdiction. Bankman-Fried admitted the business’s mistakes and refuted claims of misleading customers, while also revealing that they had considered Binance’s acquisition since the establishment of FTX.

Sam Bankman-Fried stated that the main focus when starting FTX was towards leveraged transactions and he aimed to offer great opportunities to customers. He explained that he planned to position FTX as a platform mainly focusing on margin trading. He believed that the market for margin trading had limited numbers of exchanges serving in the field and, therefore, he saw great potential in this market.

Also, SBF stressed that one of the notable features of FTX was its sophisticated risk management system. Therefore, during his testimony, he stated that an exchange like Binance could consider purchasing FTX.

CZ’s Statement

Binance CEO Changpeng Zhao (CZ) had said he considered the idea of acquiring FTX at the time of the events. However, he gave up this idea shortly afterwards. Bankman-Fried mentioned that during this process, Binance’s consideration of buying FTX came to the forefront and they took steps in this direction.

You might like: What is Supra Oracles? What Does It Do?

But, in the end, Binance gave up on buying FTX. CEO Changpeng Zhao had said, “The problems with FTX were beyond our control or ability to help.”

Nevertheless, Binance avoided buying FTX at an early stage. Bankman-Fried revealed that they instead used an internal Binance team to develop their own platforms.

Bankman-Fried, while answering questions about FTX’s local token FTT in court, noted the Binance’s BNB token was a source of inspiration for FTX. In addition, he announced that Binance provided $80 million worth of initial funding to FTX in form of BNB tokens.

In the comment section, you can freely share your comments and  opinions about the topic. Additionally, don’t forget to follow us on Telegram, YouTube, and Twitter for the latest news and updates.