The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

FTX Hearing: Kevin O’Leary Reveals Phone Conversation With Sam Bankman-Fried After Accounts Were Wiped

by Daily Hodl Staff
December 14, 2022
in Regulators, Scams, Schemes and Hacks

Shark Tank star Kevin O’Leary has revealed a phone conversation he had with former FTX CEO Sam Bankman-Fried after the crypto exchange lost its customers’ funds.

Speaking under oath in front of the U.S. House of Representatives Financial Services Committee, the former FTX spokesperson details the conversation he had with Bankman-Fried last month after he realized his funds were no longer in his FTX account.

Says O’Leary,

“After my accounts were stripped of all of their assets and all of the accounting and trade information, I couldn’t get answers from any of the executives in the firm so I simply called Sam Bankman-Fried and said ‘Where is the money Sam? He said he had been refused access to the servers, he no longer knew. I said ‘okay let’s step back’. This is a simple case in my mind of ‘where did the money go?’ I said ‘Sam, walk me back 24 months, tell me the use of proceeds of the assets of your company. Where did you spend it?'”

According to the venture capitalist, Bankman-Fried disclosed to him that Binance had purchased a 20% stake in FTX in the past and he repurchased those shares from Binance for a price of between $2-$3 billion.

“I didn’t know this at the time, but at some point, [Changpeng Zhao], who runs Binance, purchased 20% ownership in Sam Bankman-Fried’s firm for seed stock, and then over time – and I asked him ‘what would compel you to spend $2 billion?… Later, in a subsequent conversation about 24 hours later, he told me it could have been as much as $3 billion to buy back the shares from [Zhao]. I asked him ‘what would compel you to do that? Why wouldn’t you keep your assets on your balance sheet and why would you offer this to just one shareholder?'”

According to O’Leary, Bankman-Fried said that Zhao wouldn’t give the necessary regulatory data from the relevant jurisdictions to FTX, forcing the firm to buy out Binance, leading to a huge hit to its balance sheet.

“Apparently, according to Sam Bankman-Fried, [Zhao] would not comply with the regulators’ requests in these different jurisdictions to provide the data that would clear them for a license. He withheld it… the only option the management and Sam Bankman-Fried had was to buy him out at an extraordinary valuation… that stripped the balance sheet of assets.”

From O’leary’s perspective, the collapse of FTX was largely triggered by the actions of Binance in a potential act of industrial competition.

“In my view, my personal opinion, these two behemoths that own the unregulated market together and grew these incredible businesses in terms of growth, were at war with each other, and one put the other out of business intentionally. Now, maybe there’s nothing wrong with that, maybe there’s nothing wrong with love and war but Binance is a massive, unregulated global monopoly now. They put FTX out of business.”

Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Konst787/Plasteed

Submit a Press Release

Industry Announcements

  • BlockJoy Secures Nearly $11 Million From Gradient Ventures, Draper Dragon, Active Capital and More To Launch Decentralized Blockchain Operations
    February 2, 2023
  • Peer Acquires Elite Team of Engineers Behind Zenly’s Popular 3D Maps
    February 1, 2023
  • Sign Up Today for the TRON Grand Hackathon aka HackaTRON Season Four
    February 1, 2023
  • MegaWorld Land Gameplay on BNB Chain Starts February 15, 2023
    February 1, 2023
  • Web 3.0 Hackathon on Astar Sponsored by Toyota Motor Corporation
    February 1, 2023
  • Match-Trader White Label by B2Broker Gives Brokers a Comprehensive Online Trading Platform With B2Core Integration
    February 1, 2023
  • Addressable Raises $7.5 Million To Enable Web 3.0 Companies To Acquire Users at Scale
    January 31, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$23,440.28
$23,440.28
0.6%
Ethereum
$1,681.70
$1,681.70
0.98%
Cardano
$0.403357
$0.403357
0.65%
XRP
$0.413334
$0.413334
1.02%
Dogecoin
$0.097388
$0.097388
5.28%

Spotlight

  • DOJ Seeks To Cut Off Sam Bankman-Fried’s Communication With Key People Involved in Fraud Trial
    January 29, 2023
  • Binance Announces New Decentralized Storage System Based on the BNB Chain
    February 1, 2023
  • Trader Who Called Exact Bitcoin Bottom Says One Ethereum Competitor Looks Ready for Massive Breakout
    February 4, 2023
  • Macro Guru Raoul Pal Unveils 2023 Bitcoin and Ethereum Forecast, Says Positive Year Ahead
    January 30, 2023
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl