Binance is an unregulated monopoly

The U.S. Congress held a second hearing this week to examine the effects of FTX’s bankruptcy. The company went bankrupt in November, shocking the sector and fueling criticism of Washington’s lax regulation. On Monday, Bankman-Fried was arrested in the Bahamas after the U.S. government filed criminal charges against him concerning various investigations into his suspected misbehavior.

O’Leary criticized Binance for contributing to the demise of FTX

The discussion surrounding the demise of what was once one of the biggest crypto exchanges in operation has grown thanks to the Senate Banking Committee hearing on FTX on Dec. 14. Four distinct witnesses, all current FTX workers, offered their testimony and viewpoints.

Kevin O’Leary, a well-known investor and shark who invests in FTX, has previously worked as a paid ambassador for the crypto platform. He was one of these witnesses. O’Leary still supports blockchain technology and has solid opinions about the market in general.

The creator of FTX, Sam Bankman-Fried, was reportedly called by O’Leary after the company declared bankruptcy, which is an interesting claim. Bankman-Fried allegedly asserted to O’Leary that a considerable portion of the lost money was used to buy back FTX shares from Binance founder Changpeng Zhao.

O’Leary claimed that $2 to $3 billion in funds were used to buy the FTX shares. He also recognized that this should have been reported because it included a related party transaction.

Binance and FTX row

According to reports, Bankman-Fried said he had to buy these shares because CZ allegedly impeded FTX’s efforts to obtain regulatory permission in several places by preventing compliance requirements. O’Leary stated that CZ would not provide the data required by different governments.

“Binance is a massive unregulated monopoly now. This is my personal opinion.”

Kevin O’Leary during the FTX hearing on Dec. 14

He went on to say that he wants a “Madoff Clawback” on those transactions, directly criticizing Binance while also implying that the crypto exchange is at blame.

Blame it on Binance

The issues at FTX extended far beyond buying shares from CZ, as demonstrated by additional remarks made by prosecutors and new FTX CEO John J. Ray, III. O’Leary, though, places much of the blame, if not all of it, on rival crypto exchange Binance.

Furthermore, according to O’Leary — Bankman-Fried had indicated that he had to buy these shares because CZ was inadvertently impeding the exchange’s attempts to obtain regulatory permission in different countries by enforcing compliance obligations.

He said that CZ will not adhere to the data standards set forth by other governments. Additionally, he was quoted as suggesting that Binance has deliberately attempted to throw rival FTX “out of business.”