\u201cAs an early investor in FTX, we became increasingly uncomfortable with Alameda and [Bankman-Fried] and initiated the exit process more than 1.5 years ago. <\/em><\/p>\n Sam was so unhinged when we decided to pull out as an investor that he launched a series of offensive tirades at multiple Binance team members, including threatening to go to \u2018extraordinary lengths to make us pay\u2019 \u2013 we still have those text messages.\u201d<\/em><\/p>\n According to Zhao, it was apparent that something was wrong with FTX when he noticed Bankman-Fried\u2019s firm was lavishly spending money, even outspending Binance, a company much larger than the bankrupt crypto exchange.<\/p>\n \u201cYou don\u2019t have to be a genius to know something [didn\u2019t] smell right at FTX. They were 1\/10th our size, yet outspent us 100\/1 on marketing and \u2018partnerships,\u2019 fancy parties in the Bahamas, trips across the globe and mansions for all of their senior staff (and his parents).\u201d <\/em><\/p>\n Zhao also questions prominent venture capitalist and former FTX spokesperson Kevin O\u2019Leary, asking him how he could continue to defend a \u201cfraudster\u201d like Bankman-Fried.<\/p>\n \u201cIt seems $15 million not only changed Kevin O\u2019Leary\u2019s mind about crypto, it also made him align with a fraudster. Is he seriously defending Bankman-Fried?\u201d <\/em><\/p>\n Bankman-Fried caught wind of Zhao\u2019s comments and countered, saying<\/a> that Binance had no right to pull out of its FTX investments.<\/p>\n \u201cYou won, [Zhao]. <\/em><\/p>\n There\u2019s no need to lie. Now, about the buyout. We initiated conversations around buying you out, and we decided to do it because it was important for our business. And while I was frustrated with your \u2018negotiation\u2019 tactics, I chose to still do it.<\/em><\/p>\n You threatened to walk at the last minute if we didn\u2019t kick in an extra ~$75 million. We did it anyway because this just made us feel more confident we didn\u2019t want Binance on our cap table. But again, none of this is necessary. You won. Why are you lying about this now?<\/em><\/p>\n Among other things, as you know, you didn\u2019t even have the rights to pull out as an investor unless we chose to buy you out \u2013 much of the tokens\/equity was still locked.\u201d<\/em><\/p>\n Zhao retorted<\/a>, saying that in the end, \u201cno one won.\u201d<\/p>\n \u201cSam, not that it matters now. You also can\u2019t force us to sell if we don\u2019t want to. Also, we have the veto right to block any further fundraising you were doing. Never used or mentioned it. It was never a competition or fight.\u201d<\/em><\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get crypto email alerts delivered directly to your inbox <\/span><\/em>
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