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Crypto: What proposal From SBF Did CZ Turn Down?

Thu 05 Oct 2023 ▪ 4 min of reading ▪ by Eddy S.
Getting informed

Accusations against SBF, the former CEO of crypto exchange FTX, continue to make headlines. And one thing is certain, the case won’t calm down anytime soon, especially when Michael Lewis adds fuel to the fire. According to his statements, it seems that the relationship between Binance and FTX has never been smooth. Why?

crypto binance ftx changpeng zhao sam bankman-fried

CZ Allegedly Refused to Invest in the Creation of FTX

The crypto ecosystem is full of scandals. But when it primarily involves two of the biggest investors in the sector, there’s no doubt that it grabs attention. Since the collapse of FTX, many cryptocurrency enthusiasts believe that Changpeng Zhao isn’t entirely innocent in this story.

However, if some believe that there is animosity between the two, the reasons might surprise them. According to an excerpt from Michael Lewis’s book, “Going Infinite: The Rise and Fall of a New Tycoon,” it seems that CZ allegedly refused Sam Bankman-Fried’s request to invest $40 million in the creation of his crypto exchange in 2019.

Indeed, the entrepreneur proposed to Binance’s CEO to put his funds into a futures exchange with zero risk. This would imply protection in case of bad trades with high leverage. Given the inevitable volatility of crypto markets, the project seemed like a golden opportunity.

However, CZ preferred to pass on the offer. It appears they had a different vision at the time. While Binance wanted to focus on retail customers, FTX was targeting institutional investors. A response that apparently didn’t sit well with the one whose trial is beginning in New York. But this wouldn’t be the only time Binance would turn its back on FTX.

CZ, the Mastermind Behind SBF’s Crypto Exchange?

Binance is one of the pillars of the crypto sector. Although its centralized nature is sometimes controversial, there’s no denying that CZ seems to have a keen eye. A few years after refusing to invest $40 million in the FTX project, the crypto investor reportedly also refused to save the platform in 2022.

As the downfall was looming, the businessman declined SBF’s proposal to acquire his exchange. With Sam Bankman-Fried’s trial, rumors about Changpeng Zhao’s involvement in FTX’s downfall resurface.

FTX is doing everything to recover, while its former CEO Sam Bankman-Fried faces American justice. As the investor faces numerous charges, an excerpt from Michael Lewis’s book adds fuel to the fire. Considering that he’s a supporter of the exchange, how will the market react to this new information?

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Eddy S. avatar
Eddy S.

Le monde évolue et l'adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m'intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l'optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.