Kevin O’Leary: Binance Is To Blame For FTX’s Collapse

A supporter of the crypto-currency exchange, FTX, came into the light on December 14. The defender was none other than the Millionaire Canadian businessman, Kevin O’Leary, who testified in front of the Senate hearing that took place on Wednesday, last week. 

The Shark Tank star claimed that the FTX and the rival platform Binance were at war with each other and that Binance intentionally put the company out of business. 

He told the US Senate Banking Committee, which is investigating the collapse of FTX, that according to his views, these two behemoths that own the unregulated market together and these incredible businesses were at war with each other and one put the other out of business intentionally. 

Binance Is To Responsible For FTX’s Collapse, According To Kevin O’Leary

Next, the FTX investor and ambassador reiterated his earlier statement that Binance put FTX out of business and claimed that the rival company has become a giant unregulated worldwide monopoly. 

Once one of the biggest cryptocurrency exchanges in the world, FTX, went bankrupt in November, during the time when the CEO of Binance, Changpeng Zhao, announced that his firm would sell all of its FTX Token (FTT) holdings.

This move by the CEO of the world’s largest exchange was unexpected by the crypto industry and led to a liquidity crisis on the exchange, which was already hiding its financial conditions, according to several reports. The rival platform, Binance, held 20 percent of FTX’s stocks because it was one of the first investors in the company. 

The FTX’s new chief executive officer, John Ray, a lawyer, and insolvency specialist who oversaw Enron’s bankruptcy, spoke in favor of Binance a day ago in front of the committee that the crypto-currency company had nothing to do with the exchange’s collapse.

A few days ago, Binance founder, CZ, publicly called out the celebrity and a CNBC contributor, O’Leary, for still defending Sam Bankman-Fried after the company’s demise, which cost him more than $10 million.

CZ publicly told him that he could only blame himself and his friend, Sam, for all the happenings to FTX. 

Kevin O’Leary was one of the few celebrities who were sued by FTX investors for their advocacy of the company including Tom Brady and Larry David. The American investor was paid about $15 million to be an ambassador and spokesman for FTX and claimed that he invested around $9.7 million in cryptocurrencies. In addition, he bought FTX shares for $1 million from the paycheck received from FTX. 

>Related: Binance CEO Zhao Dismisses Worries Over The $2.1 Billion FTX Clawback

On Thursday, Binance commented on Kevin O’Leary’s statement by saying that as per the SEC complaint, especially sections 76&77 and John Ray’s testimony, his statement is categorically false. 

Mr. Sam Bankman Fried was not present during the hearing on Wednesday as he was arrested in the Bahamas on Monday on the charge of one of the biggest cryptocurrency frauds of history, which are eight scams including conspiracy and wire fraud. He was alleged of misusing billions of dollars from clients’ funds before the collapse of FTX and Alameda Research. 

The Bahamas-based FTX founder, Sam, was denied bail by the court on the assumption that he would abscond with the help of the available substantial finances. 

The USA is likely to seek the extradition of Mr. Bankman, said the attorney general and minister of legal affairs of the Bahamas in a statement released on Monday. 

Sam’s legal team told the Bahamas Magistrate Court that they will oppose his extradition to the USA. 

However, there is some conspiracy theory by people that he was detained because he was going to expose influential politicians and famous actors in the cryptocurrency sector.