The news comes as Binance appears as a witness to a UK-led investigation into the FTX crisis.
FTX and Binance are cryptocurrency exchange houses, that is, their purpose was and is to offer their clients a space to exchange digital currencies for other digital currencies, or for traditional money and vice versa.
On Nov. 9, Binance announced that it had decided not to purchase FTX, “after completing the due process audit of the company.”
Binance has to present all the evidence about the now-suspended deal to buy FTX.com assets to UK lawmakers, Bloomberg reported.
Binance will reportedly provide documentation on its deal negotiations with FTX and decision-making for the sale of FTX’s native token FTT.
Exchange to Provide Documents to UK Regulators
An exchange spokesperson told the news outlet: “Binance will provide the documents that it has promised to share.”
The news comes as former FTX competitor and largest exchange by volume, Binance, appears as a witness in a UK-led investigation into the exchange.
Daniel Trinder, Binance’s vice president of government affairs, said there was no intent to kill the competition. Instead, Trinder argued that after the deal was announced, they did not believe the assets were “worth it.”
Trinder promised that Binance would provide the committee with internal documents on the aborted deal.
Meanwhile, UK lawmakers warn of cascading effects on the market when FTX files for bankruptcy.
Cascading Effect of FTX Bankruptcy
Ian Taylor, the chief executive of Crypto UK, told the Treasury select committee that, “What we heard is that most of the funding on that platform came from institutional investors.”
He added that, “There are now many UK-regulated crypto exchanges that accept retail money, and at the moment, hopefully, they are doing well. We haven’t seen anything. But… this is a superfluid situation.”
As many companies have money trapped in the exchange, several cryptocurrency companies have started to experience the full effects of the FTX crash.
Sequoia Capital, a venture capital firm, reported a loss on its exchange investment of $213.5 million. Solana-based game studio Star Atlas has revealed that the FTX accident cost it half its cash flow.
Meanwhile, the Monetary Authority of Singapore (MAS) clarified that the exchange does not operate in Singapore after it was alleged that many Singaporeans lost money when the exchange went down.
The FTX Group is claimed to have over a million creditors as it moves towards bankruptcy.
Travis Kling, director of cryptocurrency hedge fund Ikigai, told The Guardian: “There is a lot of uncertainty about what will happen next… At some point, we will be able to make a better decision about whether or not Ikigai will continue.” just move into relaxation mode.”
By Audy Castaneda
