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FTX collapse: John Deaton Reacts Strongly to Binance's Alleged Involvement

Wed 04 Oct 2023 ▪ 3 min of reading ▪ by Luc Jose A.
▪ Centralized Exchange (CEX)

An expert recently insinuated that the Binance exchange may have contributed to the downfall of the high-profile FTX exchange, a story that has been making headlines. This allegation has sent shockwaves through the crypto community, prompting responses from John Deaton, Ripple’s lawyer, and Changpeng Zhao (CZ), the founder of Binance.

FTX and Binance crypto exchange logos

John Deaton Disputes Binance’s Involvement in FTX’s Fall

During a recent talk show, an ‘expert’ hinted that the crypto exchange platform Binance might have played a role in the downfall of FTX. According to this expert, Binance may have discredited the company by casting doubt on its activities.

This, as per the expert’s claim, led to the monumental collapse that FTX subsequently experienced. The collapse was linked to a massive bank run by the company’s users, and the trial for this event opened on Tuesday, October 3.

These comments sparked strong reactions within the crypto community. John Deaton, a pro-XRP lawyer, particularly responded to these allegations. His statements appeared entirely groundless given the many developments in the FTX case in recent months.

Naturally, John Deaton did not hold back in challenging the validity of these claims. On X (formerly Twitter), the attorney contested this version of events, questioning the wisdom of anyone accusing Binance of causing FTX’s collapse.

John Deaton criticizes the expert who blamed Binance for FTX’s collapse

The Enigmatic Response of Changpeng Zhao (CZ)

These statements, considered both absurd and untrue by John Deaton, did not leave Changpeng Zhao (CZ) indifferent. The head of Binance responded to these allegations, albeit in a somewhat enigmatic manner.

“He probably wishes everyone to be as stupid, but…” was Changpeng Zhao’s evasive response, without elaborating further. He represents one of the most high-profile figures in the crypto industry.

Anyone who has followed this case and its developments knows that it is overly simplistic to accuse Binance of causing the crisis at FTX by casting doubts on its activities. The responsibility of Sam Bankman-Fried, the CEO of FTX at the time of its fall, has been scrutinized. He is currently defending himself against charges of fraud and money laundering. For now, things seem to be heading in a grim direction for the man known as the Mozart of cryptocurrencies, as he faces the prospect of 175 years in prison.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

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.