Investing

Binance to Share FTX Deal Documents with UK Lawmakers: Report

Binance is set to hand evidence to UK policymakers about discussions between itself and the collapsed FTX, according to Bloomberg. The crypto exchange will also provide information about the decision-making process around Binance’s move to offload FTX token holdings, said Binance’s VP of government affairs in Europe.

Binance Says it Did Not Offload FTT Holdings to Trigger FTX’s Collapse

Daniel Trinder, Binance’s vice president of government affairs in Europe, said the crypto exchange will provide evidence to members of the UK Parliament’s Treasury Committee regarding its failed rescue deal with FTX. The embattled crypto exchange filed for bankruptcy last week.

Additionally, Trinder said Binance will also give UK lawmakers information about the company’s decision to offload all of its holdings of FTX native token, FTT. Prior to FTX’s collapse, Binance sold almost $530 million worth of FTT tokens due to “revelations” that the token was used to inflate the balance sheet of Alameda Research, a crypto trading firm founded and owned by FTX boss Sam Bankman-Fried.

According to Bloomberg, Binance will provide the information to UK lawmakers as part of the company’s “appearance as a witness in the group’s crypto asset inquiry.” Trinder and Binance faced strong criticism for announcing the FTT token sale earlier this month.

The sale sent FTT’s trading volume to a new record high and was one of the key events that led to FTX’s collapse. However, Trinder denied allegations that Binance intentionally sold FTT tokens to crash the rival crypto exchange and “promised to deliver evidence to back up that claim by Nov. 15,” the report says.

Binance Could Withhold Some of the Evidence Due to Ongoing Investigations Into FTX

Binance could also redact some of the information it is expected to provide to lawmakers, Trinder said, as multiple regulatory bodies are currently investigating FTX. However, the chair of the Treasury Committee, Harriet Baldwin, said Binance will have to clarify why it is refusing to offer some of the evidence.

In its bankruptcy filing, FTX noted a “severe liquidity crisis” and said the company could have over 1 million creditors. The fallen crypto exchange also said in the filings it was in contact with financial regulators and had hired five new independent directors at its main subsidiaries, including Alameda Research.

The New York Times reported on Sunday that FTX loaned $10 billion of user funds to Alameda to help it cover its liabilities. SBF said he wasn’t entirely aware of the downside risk, adding that Alameda’s margin position on FTX was “substantially larger than I had thought it was.”

This article originally appeared on The Tokenist

Sponsored: Find a Qualified Financial Advisor

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.