Changpeng Zhao, CEO of Binance, has disclosed in his memoir that he signed the FTX letter of intent merely as a formality, criticizing Caroline Ellison's proposed $22 FTT floor price as a "fatal mistake." Zhao emphasized that he never seriously considered acquiring FTX, describing Sam Bankman-Fried's approach as "indirect and ambiguous." The letter of intent was intended to evaluate user protection possibilities.
Zhao highlighted that Ellison's public announcement of the $22 floor price allowed professional traders to short FTX, accelerating its downfall. He also mentioned that Zane Tackett of FTX initiated a Signal group named "Exchange Collaboration," which led to investigations by the U.S. Department of Justice and the Securities and Exchange Commission over potential collusion. Zhao denies any involvement in these activities.
Changpeng Zhao Criticizes FTX's Strategic Missteps in New Memoir
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