When SBF Came Knocking
It all started with a call that made CZ feel like he was in a soap opera. In a moment of desperation, Sam Bankman-Fried (SBF) reached out to Binance’s CEO, looking for a lifeline. “When he came to me, I knew he was desperate,” CZ said. Apparently, SBF thought Binance might be the last hurrah before the curtain fell on his exchange. How romantic, right? But, alas, instead of a happy ending, they encountered a truckload of problems.
Due Diligence Dilemmas
Binance planned to dive in and extend a helping hand to FTX—not just for SBF, but for the users hoping to avoid a financial train wreck. However, the deeper they dug, the gloomier it got. CZ stated that after signing a letter of intent, the skeletons in FTX’s closet started dancing like they were at a family reunion. Sadly, the dance party ended before it even started, and the deal was scrapped faster than you can say “crypto crash.”
The Bankruptcy Bombshell
Never one to miss a beat, just days after Binance backed out of the deal, FTX filed for Chapter 11 bankruptcy. It was like a bad horror movie where the protagonist barely escapes only to hear a deafening crash in the distance. The crypto world collectively gasped, and now everyone was scrambling, like they had lost a game of musical chairs.
A Complex Relationship
What’s a good drama without some juicy backstories? Before the downfall, SBF was just a young genius with dreams to conquer the crypto exchange landscape. CZ gave FTX a thumbs up back in the day, considering SBF’s technical prowess and team. However, as FTX flourished, murmurs of SBF lobbying against Binance in Washington, D.C. began to circulate. CZ recalled hearing strange whispers: “This is not so good.”
The Aftermath and Reflections
In retrospect, CZ has had some sharp thoughts on SBF’s ability to read the room—especially when he tweeted congratulations, labeling CZ as a “sparring partner.” CZ retorted, stating, “Only a psychopath can write that tweet.” Clearly, all is not well in the land of crypto. At the end of the day, CZ’s approach is not about fighting other exchanges but rather about collaboration—even if that collaboration sometimes resembles a game of chess. He emphasizes that Binance wasn’t out to deceive anyone; they were simply trying to protect their turf and maintain transparency.
