Binance, which is the world’s largest cryptocurrency exchange by volume, denied it planned to deliberately sink FTX after being questioned by lawmakers in the U.K.
The exchange sent the Parliament’s Treasury Committee a five-page document outlining the sequence of events that led to the FTX collapse on Wednesday. It said the initial catalyst was a CoinDesk article on how most of Alameda Research’s assets were FTX’s FTT tokens. FTX has since filed for bankruptcy.
“It is clear from the above that the causes of the collapse of FTX were the financial irregularities and possible fraud initially reported in the CoinDesk article on 2 November,” the statement read.
The Treasury Committee held a hearing on Monday to question officials from crypto companies in the aftermath of FTX’s collapse, and Daniel Tinder, offered to send the document after Member of Parliament Harriett Baldwin, who is chairwoman of the committee, asked if Binance CEO Changpeng Zhao “brought about the collapse of FTX?”
The committee also asked Trinder if Binance knew its actions that included unloading much of its holdings of FTT on the market and agreeing to acquire FTX before backing out of a deal could lead to the collapse of FTX.
“But it must have been apparent when that decision was taken that was likely to cause the collapse of FTX, one of your major competitors,” Baldwin said.
Read more: Crypto Industry Participants Field Questions from UK Lawmakers After FTX Collapse
