The UK Parliament’s Treasury Committee summoned entities from the crypto industry to better comprehend Binance’s role in the FTX crash. However, the world’s largest cryptocurrency exchange denied that it didn’t plan to deliberately crash rival FTX but added that it reduced its exposure due to the company’s irregularities.
Binance also sent a five-page document outlining the events leading up to the FTX collapse.
Binance’s vice president of government affairs in Europe, Daniel Trinder, had previously stated that the company would provide the information to members of the UK Parliament’s Treasury Committee as part of the crypto exchange’s appearance as a witness in the group’s crypto asset inquiry.
The Binance document was prompted by a question from committee chairwoman Harriett Baldwin, who specifically asked whether Binance CEO Changpeng Zhao “brought about the collapse of FTX?”
According to the document, the initial catalyst was a CoinDesk article describing how the majority of Alameda Research’s assets were made up of FTX’s native token, FTT.
The document described the unfolding events and concluded that, in the hope of protecting FTX’s users, which included Binance users, Binance had agreed to enter into a non-binding letter of intent in respect of an acquisition, subject to the completion of full due diligence on FTX.
The financial irregularities caused by the collapse of FTX prompted Binance, as a holder of FTT, to decide to liquidate its remaining holding of FTT in order to reduce its financial exposure.
Also Read: All about FTX Crash and Chaotic turn of Events: Crypto Doom
