CZ Details Binance’s Early Investment and Exit from FTX

Changpeng Zhao has given a detailed account of Binance’s early relationship with FTX, tracing it back to a January 2019 meeting with Sam Bankman‑Fried, who then ran Alameda Research. CZ said Alameda was a major trading client and that its team later proposed collaborations on a derivatives platform, including offers such as a joint‑venture structure.

Binance invested 20% equity, in a deal that also involved a token swap of BNB and FTT. CZ said he remained a passive investor, did not request FTX’s financial statements, and avoided involvement in the rival futures business. Relations soured as he began hearing that Bankman‑Fried was criticizing Binance in Washington, and CZ expressed frustration that FTX hired Binance staff with higher salaries and used some new hires to approach Binance’s VIP clients.

By early 2021, with FTX raising capital at high valuations, Binance opted to exit rather than exercise veto rights over future funding.

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