Changpeng Zhao (or CZ), CEO of Binance, revealed to his followers his curiosity about some of the news from the failed crypto-exchange FTX that concerns him.
And indeed, in the testimony of Caroline Ellison, former CEO of Alameda Research, it appears that Sam Bankman-Fried wanted to increase regulatory pressure on Binance in order to increase FTX’s market share.
Crypto news: FTX wanted to increase regulatory pressure on Binance
In the famous testimony of Caroline Ellison, former CEO of Alameda Research, on the case against Sam Bankman-Fried (or SBF), strategies put in place against Binance also came up.
Indeed, according to reports, it appears that one of SBF’s goals was to increase regulatory pressure on Binance in order to increase FTX’s market share.
In practice, Ellison stated that she and Bankman-Fried had devised various strategies to improve FTX’s position. One of these was to take advantage of a regulatory “crackdown” on Binance.
Not coincidentally, just before its collapse in November, FTX was the second largest crypto-exchange in the world, behind only Binance.
From what has transpired, that strategy does not appear to have been left unfinished. Indeed, Ellison said Bankman-Fried would assure her that regulators had “promised” him that regulatory pressure on Binance was imminent.
Crypto news: Binance CEO’s reaction to FTX’s unfair SBF strategy
Ellison’s testimony was made during the 11 October trial, but only today, Binance CEO Changpeng Zhao (or CZ) wanted to talk about it on X.
Not exactly breaking news, but still interesting to learn the details.
FTX sought regulatory “crack down” on Binance to increase market share | Federal Newswire https://t.co/jRRVF0IUuy
— CZ
Binance (@cz_binance) November 10, 2023
Basically, CZ finds himself intrigued about the affair partly because it was reported that in March 2022, SBF himself, allegedly had a 45-minute Zoom phone call directly with SEC Chairman Gary Gensler.
Obviously, that meeting raised several concerns about potential conflicts of interest. Not only that, in addition, a Freedom of Information Act request revealed no evidence that Gensler obtained permission from the SEC’s Office of the Ethics Counsel to hold the meeting, which experts say violates SEC protocol.
The history of Binance vs. SEC and market share
It was early June 2023, when the US Securities and Exchange Commission filed its 13 charges against Binance and CZ, for a variety of securities law violations.
Soon after, the SEC would also seek a temporary restraining order to freeze assets related to Binance.US, which was then resolved the following week.
Right here, while CZ reportedly expressed relief over the matter, Binance.US’s market share would begin to suffer a sharp slump that has been calculated at -16% since April.
The SEC’s continuing investigation against Binance.US has continued throughout the summer, with the latest decision by a federal judge to deny the regulator permission to inspect the crypto-exchange’s software.
In any case, in CoinGecko’s latest report released last month, 2023 Q3 Crypto Industry Report, it appears that Binance’s market share dropped to 44% in September, losing some of its dominance.
