Lawmakers Grill Binance Over FTT Tokens Selloff That Triggered FTX Collapse

Crypto exchange Binance on Tuesday said it agreed to submit evidence related to the proposed FTX acquisition deal and decisions to liquidate FTT token holdings to the UK Parliament’s Treasury Committee. The crypto exchange will appear as a witness in FTX group’s crypto assets investigation.

Binance Submitting Evidence On FTX Deal, FTT Selloff

Binance has agreed to submit evidence that the FTX collapse was not triggered by Binance’s decision to liquidate $580 million worth of FTT tokens, reported Bloomberg on November 15.

Daniel Trinder, Binance’s vice president of government affairs in Europe, was grilled by lawmakers on Monday over the decision to liquidate $580 million worth of FTX Token (FTT). Thus, the UK Parliament’s Treasury Committee seeks evidence about Binance’s decision-making behind selling FTT tokens and due diligence carried out for the potential acquisition of FTX.

After Binance decided to sell FTT tokens amid the revelations surrounding Alameda Research and FTX, trading volumes for the token jumped over a year high. It also triggered the chain of events that led to FTX filing for bankruptcy as it started facing a liquidity crunch.

UK Parliament’s Treasury Committee Chair Harriett Baldwin said it expects evidence including internal correspondence and records about potential market consequences of Binance’s FTT divestment.

Moreover, Trinder explained that Binance never intended the collapse of rival crypto exchange FTX, the intention was to protect its own users. He also promised to deliver evidence by November 15 itself. However, Binance may edit some information due to legal and security purposes.

The correspondence between FTX and Binance amid the liquidity crunch will reveal if Binance was aware that it could impact the crypto market.

Sam Bankman-Fried Cryptic Tweets

Meanwhile, Sam Bankman-Fried continues to post single-word tweets that Crypto Twitter asserts that he is covering older deleted tweets with new tweets to prevent them from tracking by tracking bots.

In a recent tweet, he tries to explain what led to the collapse of FTX and current plans amid the bankruptcy proceedings.

“I’ll get to what happened. But for now, let’s talk about where we are today.”

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

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