The crypto-derivatives exchange FTX has repurchased the shares it previously sold to Binance. In an interview with Decrypt, founder Sam Bankman-Fried explained that the move was necessary to increase flexibility and reflect differences in their approaches to running the business.
In July, following a Series B raised $900 million, bringing its valuation to $18 billion.
The deal provided the resources needed to buy back Binance-held shares for an undisclosed sum, which the firm had invested in the crypto-derivatives platform in December 2019.
“It makes sense, given the role our companies play in the industry. It will give us more flexibility in the future”, said Bankman-Fried.
According to the founder of FTX, Binance had faced a ‘flood’ of regulatory complaints. He offered a measured assessment of the situation.
“I think I would have found ways to respond and act differently. And we would have handled the situation differently”, added him.
The FTX chief hinted that these events revealed differences in how exchanges run their businesses.
“We have fully exited; we are very pleased with this impressive growth”, Zhao previously told Forbes.
As noted, in June the UK Financial Conduct Authority banned Binance Markets Limited from any regulated activity in the country without prior written approval.
The Cayman Islands began probing Binance’s operations, Thailand and Hong Kong accused the company of unlicensed activity, Japan issued another warning.
Polish regulators warned consumers about the risks of dealing with the platform, while Italy and Malta warned about Binance’s unregulated activities.
Against the backdrop of regulatory pressure, CEO Changpeng Zhao published an open letter in which he told of Binance’s plans to ensure regulatory compliance and protect customers.
In Forbes’ list of crypto billionaires for 2020, Sam Bankman-Fried, who ranked second with $4.5 billion, surpassed Changpeng Zhao ($1.9 billion, fifth).
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