Binance vs. FTX – From Cooperation to Competition

[nihalsari]

CZ described the gradual unraveling of the Binance–FTX relationship. He said Binance initially supported FTX via a token swap (BNB for FTT) and remained a passive investor, avoiding requests for financial statements due to competition in futures trading.

However, growing rivalry, aggressive hiring by FTX, and strategic disagreements led Binance to exit the investment in July 2021, long before FTX’s collapse. CZ emphasized that the collapse was ultimately due to internal fraud and mismanagement at FTX, not any actions by Binance, which had sold its stake without visibility into FTX’s finances.