Did Binance deliberately sink its rival? Ongoing investigation

CZ amended in social networks his paper in the bankruptcy of its FTX Competitor. A British Parliamentary Committee asks for more and says dissatisfied from items provided by Binance.

“I apologize for the stir I have caused,” writes the director general of Binance On Twitter. “We will try to find a good balance between denunciation, panic and falling prices.on the one hand, and the building a healthy industry and eliminating bad players, on the other hand,” CZ promises.

Alleging clumsiness or unintentional fault. is not enough for the authorities, especially in the United Kingdom. A British parliamentary committee is investigating the paper played by Binance in the bankruptcy of its direct competitor.

Does Binance stand to gain from FTX’s demise?

The cryptocurrency exchange, based on a news article, announced that it would liquidate all the FTT tokens it still held. These statements caused an immediate drop in prices. Talks were then initiated between the two companies with a view to an acquisition.

As he had already done in several times in the past, Binance finally decided to abandon the acquisition. What happened next is now known. FTX went bankrupt. If the FTX practices are in question.However, it is possible that Binance has played an active role in this fiasco.

The disappearance of this threatening rival allows the CZ company to maintain a. dominant position in the market. And it is precisely for these reasons that lawmakers want to shed light on Binance’s actions and motives.

Consequences for the entire cryptocurrency sector.

The exchange was invited to provide documents. The latter responded, among other things, by providing press articles, which would thus establish the chronology of events.

Insufficientreplies to Bloomberg Radio, Alison Thewlissmember of the Treasury Commission. “This doesn’t really give us the the real details . of the context”, justifies the parliamentarian.

I’m sure the committee will be asking more questions to find out the details of what happened here, as there are wider implications for this collapse and for the cryptocurrency sector as a whole.” warns.

Regulation of cryptocurrencies is happening now.

British lawmakers are waiting for more information from Binance, whose CEO just touted the need for the sector to be more transparent.

The British committee intends to test and benefit from this willingness, real or not, and thus verify the authenticity of the exchange’s public commitments.

But should international business be concerned? Alison Thewliss reports that a lack of transparency in this matter could influence the parliamentary committee’s investigation and its recommendations for defining a regulatory framework for cryptocurrencies. The warning is clear.