TechFlow news: In his court testimony on Friday, SBF stated that he had considered selling FTX to Binance during the early stages of Binance's development.
At the time, SBF believed FTX could become a platform specifically serving margin traders—a need largely unmet in the exchange sector. Therefore, he expected exchanges like Binance might be interested in acquiring FTX.
SBF said attracting customers was initially challenging, but FTX rapidly expanded its business due to its strong industry reputation. In 2019, FTX generated $20 million in annual revenue; by 2021, it was earning $3 million per day.
However, Binance never moved forward with an acquisition of FTX (only expressing interest after the platform collapsed).
SBF testified that Binance had its own internal team dedicated to further developing its platform. Nevertheless, Binance was indeed FTX’s first investor, providing $80 million worth of BNB as seed funding. Later, SBF repurchased Binance’s stake through a combination of FTT and other assets totaling $2.1 billion.
