Binance Moves Forward with FTX Evidence to be Submitted to UK Courts

Binance Moves Forward with FTX Evidence to be Submitted to UK Courts

• Colin Wu tweeted about Bloomberg’s report on the decision of Binance to submit details of its FTT deal to the UK government.
• Explanations of Binance’s decision to sell FTT would also be provided.
• The details would serve as a witness to the group while undertaking the inquiry.

Colin Wu, the Chinese crypto reporter tweeted on his Twitter account Wu Blockchain about Binance’s declaration to submit the evidence regarding its deal with FTX and its decision to sell FTT to UK lawmakers.

Colin Wu tweeted that as per the news issued by the television network Bloomberg, Binance’s announcement to submit the details would prove “as a witness in the group’s crypto asset inquiry”:

Bloomberg: Binance said it will submit evidence to UK lawmakers regarding discussions held about FTX when the two were in deal talks, as well as on its decision-making around the sale FTT, as a witness in the group’s cryptoasset inquiry. https://t.co/wHMp67eNZb

— Wu Blockchain (@WuBlockchain) November 15, 2022

When it was found that Alameda Research had some huge FTT holdings which seemed suspicious, investors began withdrawing their assets on a large scale in fear of losing them. Soon after, Changpeng Zhao, CEO of Binance announced the company’s decision to sell the remaining FTT tokens based on the recent revelations.

Consequently, the FTX coin had significant plummets while investors continuously withdrew their coins finally resulting in a liquidity crunch, without sufficient amount to refund.

Meanwhile, Zhao intervened in the issue, announcing that the company had decided to buy FTX though at any time, Binance has the discretion to pull out from the deal.

However, on November 10, Binance withdrew from the deal based on some reports of mishandled funds.

Recently, FTX decided to file bankruptcy and Sam Bankman-Fried put forward his resignation from the post of CEO of FTX. Immediately after the incident, investors in fear tried to withdraw their funds as a whole, but the platform halted transactions.

Consequently, when the firm allowed transactions, a huge amount was withdrawn, once again worsening the troublesome condition.

As the struggle between FTX and Binance continues, Daniel Trinder, Binance’s Vice President of government affairs in Europe, announced that the company has decided to submit the details to the UK Parliament’s Treasury Committee.

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