TechFlow News, April 8: According to a CoinDesk report, Binance founder Changpeng Zhao (“CZ”) revealed in his new memoir, Freedom of Money, that in November 2022—just before FTX’s collapse—Sam Bankman-Fried (SBF) casually asked him over the phone for “billions of dollars, as if ordering a bologna sandwich.” CZ stated he never intended to acquire FTX; signing the letter of intent (LOI) was merely a procedural step to assess whether user assets could be protected.
CZ attributed the pivotal turning point in FTX’s collapse to Alameda Research CEO Caroline Ellison’s public offer to repurchase FTT at $22—a move that inadvertently exposed the floor price to professional traders, triggering massive short-selling. Consequently, FTT plummeted from $22 to $5, and $6 billion flowed out of FTX within 72 hours. Additionally, CZ disclosed the existence of a Signal group named “Exchange Collaboration,” created by FTX’s Zane Tackett and joined by CEOs of multiple exchanges. This group later prompted collusion investigations by the U.S. Department of Justice and the Securities and Exchange Commission (SEC). CZ denied any wrongdoing.
