Binance Refutes Claims It Intentionally Crashed Competitor FTX, Citing UK Investigation

The UK Parliament's Treasury Committee has called for witnesses from the crypto sector to shed light on Binance's part in the FTX crisis. The biggest cryptocurrency exchange in the world said it had no intention of purposely crashing, FTX, but added that it has cut its exposure to the firm because of its abnormalities.

Before diving into this piece, you may want to catch up on some relevant stories, like the government and the financial sector have joined forces on a proof-of-concept initiative and the fact that FTX has had its operating license revoked by the Australian Securities and Investments Commission (ASIC)

In addition, Binance issued a five-page report detailing the circumstances behind the FTX crash. Binance's VP of European Relations, Daniel Trinder, had previously announced that the exchange would disclose the data to the UK Parliament's Treasury Committee as part of Binance's appearance as a witness in the committee's crypto asset probe.

Committee chairperson Harriett Baldwin triggered the Binance paper with a query regarding whether or not Binance CEO Changpeng Zhao "brought about the fall of FTX?"

The letter states that the original impetus was a CoinDesk story detailing how the vast majority of Alameda Research's assets consisted of FTT, FTX's native coin.

The statement outlined the developments and concluded that Binance had decided to engage in a non-binding letter of intent in relation to an acquisition, subject to the completion of comprehensive due diligence on FTX, in an effort to safeguard FTX's users, which included Binance's users.

Due to the financial irregularities brought on by the bankruptcy of FTX, Binance, as a holder of FTT, has decided to sell its remaining holding in FTT.

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