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Binance founder CZ says Sam Bankman-Fried sought billions during FTX rescue talks

CZ said Sam Bankman-Fried sought billions during Binance’s November 2022 FTX review, while Caroline Ellison’s $22 FTT buyback offer allegedly signaled a price floor that was followed by shorting and roughly $6 billion in outflows.

Summary

CZ said Sam Bankman-Fried sought billions in funding during Binance’s November 2022 attempt to acquire FTX and alleged that Bankman-Fried never intended to move the deal forward. According to CZ, Binance signed only a non-binding letter of intent to evaluate FTX rather than commit to a takeover. He also said Caroline Ellison’s $22 FTT buyback offer exposed a price floor, triggered shorting, and was followed by about $6 billion in outflows from FTX. The remarks add CZ’s account of the liquidity pressure and deal dynamics during FTX’s collapse.

Terms & Concepts
  • Letter of intent: A preliminary, usually non-binding document showing interest in a potential transaction before due diligence and final agreements are completed.
  • FTT: The native token associated with FTX, which became central to market concerns during the exchange’s collapse.
  • Buyback offer: A proposal to repurchase an asset or token from holders, which can influence price expectations and trading behavior.