Now that FTX founder Sam Bankman-Fried is in custody, Binance CEO Changpeng Zhao has apparently found another sparring partner. Celebrity businessman Kevin O’Leary, standing as the ex-FTX chief’s unofficial advocate, shot back at Zhao saying he’s part of the FTX implosion story.
O’Leary appeared Wednesday at the Senate Committee on Banking, Housing and Urban Affairs hearing on FTX’s collapse and alleged fraud. He said that the bankrupt crypto exchange and its largest rival, Binance, “were at war with each other and one put the other out of business intentionally.” And because FTX has fallen, Binance is now an “unregulated global monopoly”–alleging it was the goal of the largest crypto exchange.
When asked where did FTX money go, O’Leary theorized that some of it flowed to Binance when Bankman-Fried purchased out FTX shares from Binance.
READ: Kevin O’Leary Is Still Trying To Sell The ‘It’s Binance’s Fault’ Narrative
On CNBC’s Squawk Box, Zhao was asked about O’Leary’s testimony at the Senate hearing, particularly about the funds that allegedly went to Binance.
“Kevin O’Leary is making a bunch of nonsense claims. They don’t make sense, they don’t make any logic,” Zhao answered.
In the interview, Zhao was also questioned if Binance was willing to repay to bankruptcy trustees the $2.1 billion payment it received from FTX when it withdrew its 2019 Series A investment.
The trustee may reclaim any beneficiary within a two-year lookback period if bankruptcy proceedings prove that the payment was fraudulent or that the individual should have had reasonable information that the payment was false.
Zhao stated that Binance is “financially sound,” but he would defer to the “perfectly capable” lawyers.
The next day, O’Leary appeared on the same show and was asked about Zhao’s remarks. Essentially, he disputed the Binance chief’s answers and claimed that “he is part of the story, too,” doubling down on the proceeds the exchange received when FTX bought out its equity.
“And then [Zhao] confirmed that he still had $550 million… of FTT tokens,” O’Leary pointed out. “Why was Sam Bankman-Fried or the whole company of FTX forced into bankruptcy? It was jamming down that last half a billion that gave him no option.”
The celebrity businessman also added that he believes that was the “fatal blow” that allowed Binance to get rid of a “global competitor.”
Sam Bankman-Fried is currently being held in prison in the Bahamas while awaiting extradition to the US where he’s facing eight counts of criminal charges, including wire fraud and conspiracy to commit money laundering, among others. He is also facing charges brought by the US Securities and Exchange Commission, and the US Commodity Futures Trading Commission.
And yet, O’Leary, who admitted to being paid $15 million to become an FTX spokesperson, has been telling people the same narrative Bankman-Fried had been trying to sell to anyone who’d give him airtime.
Information for this briefing was found via CNBC and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
One Response
I don’t only concur with your stance on the subject that Kevin O’Leary is in fact part of the problem ! But is the poster boy for opulence and self centred narcism.
When the world governments are trying to tackle the issue of Global warming by drawing attention to ones personal carbon footprint and the excesses of life that are offered at this time in human history, for some seems to lack any real inner reflection on life? This becomes compounded when taking $15,000,000 has to talk and speak on behalf of FTX . It seems common greed and the failings of being human and open to being ethically if not criminally compromised.
The image that Kevin O’Leary is bestowing onto society is counter productive in trying to achieve a reduction in climate change ! His carbon Footprint is the main underlying problem in society. As his consumption level on a materialistic leval is out of this world witch adds to the question of entitlement that has derogatory ramifications to the planet as a whole . He is trying and has succeeded in making himself the poster boy of Canadian corporate capitalism at a time in human history that most prefer the more silent type? And because he accepted payment of $15,000,000 I think he is guilty of misrepresentation at the of his own reputation while falling victim to human condition called greed.
Capitalism weeds out what human nature is really like and I think his ego will prove his down fall, as he took $15,000.000 and is guilty of intended negligence in my opinion .Regardless of crying poor ! He is the sole reason many lost money as he was the face and pitchman to a great extent. He spoke in promotion while not knowing the truth hence my reasoning for my opinion .
Edward HC Graydon