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HomeCrypto NewsMarketCardano Founder Says It’s A Joke to Put FTX Fall On Binance

Cardano Founder Says It’s A Joke to Put FTX Fall On Binance

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Hoskinson described plans to put Binance under congressional scrutiny as a joke.



Cardano founder Charles Hoskinson has reacted to reports stating that Binance’s role in the FTX exchange collapse has come under congressional scrutiny. Cryptocurrency media outlet TheBlock reported yesterday that Rep. Patrick McHenry, R-N.C., a senior House Republican revealed that Binance is under congressional scrutiny for its role in the FTX saga.

According to Rep. McHenry, a bipartisan hearing next month will focus on Binance’s role in the FTX meltdown.

Hoskinson’s Reaction

Reacting to the development, Hoskinson described the move as a “fu**ing joke.” 

Hoskinson said former FTX CEO Sam Bankman-Fried (SBF) was first given a “full pass” in an article published by the New York Times (NYT), and now people think it’s CZ’s fault that FTX suffered a sudden collapse.

“The punchline is that we all get a 50 billion dollar bill, and SBF gets to keep having low rent eyes wide shut parties,” Hoskinson added.

Binance’s Involvement In FTX Saga

Recall that CZ announced on November 6, 2022, that Binance would liquidate its FTT position worth over $530 million after the exchange discovered that FTX was lobbying against industry players. Following the tweet, the price of FTT slumped 10% in less than an hour due to a massive selloff.

In the past few days, many people have alleged that Binance was instrumental in the FTX exchange collapse, which they claim was caused by CZ’s comments in the wake of the FTX saga. Many believe Binance made the announcement just to hurt its competitor – FTX. Binance has repeatedly denied that it did not play any direct role in FTX’s downfall.

FTX Downfall

For clarity, the FTX saga started days before Binance CEO said the exchange would liquidate its FTT holdings. Trouble started for FTX after cryptocurrency media outlet Coindesk reported a black hole of over $6 billion in the FTX balance sheet, suggesting that the exchange has been mishandling customers’ funds.

Two days later, a pseudonymous crypto researcher, Dirty Bubble Media, suggested that the exchange seemed insolvent. He added that FTX has been printing billions of dollars out of thin air.

On November 6, CZ tweeted that Binance would liquidate its FTT position because FTX was lobbying against industry players.

Things had gone out of control, with many FTX users moving their funds out of the exchange. Binance’s move to acquire FTX did not yield positive results, as U.S. authorities launched an investigation into the FTX saga. With SBF left with no option, he filed FTX and FTX.US for Chapter 11 bankruptcy.

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Lele Jima
Lele Jima
Lele Jima is a cryptocurrency enthusiast and journalist who is focused on educating people about how the nascent asset class is transforming the world. Aside from cryptocurrency-related activities, Jima is a lover of sports and music.

Disclaimer: The content is for informational purposes only, may include the author's personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

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