Charles Hoskinson, the founder of Cardano, has commented on rumours that Congress is looking into Binance’s involvement in the collapse of the FTX market.
Plans to have Binance investigated by Congress were referred to as a joke by Hoskinson.
The Block, a cryptocurrency news outlet, said yesterday that Rep. Patrick McHenry, R-N.C., a senior House Republican, disclosed that Congress is investigating Binance for its involvement in the FTX scandal.
According to Rep. McHenry, a bipartisan hearing on Binance’s participation in the FTX crisis will be held next month.
Hoskinson responded to the news by calling the move a “fu**ing joke.”
He claimed that after former FTX CEO Sam Bankman-Fried (SBF) received a “full pass” in a New York Times (NYT) piece, people now believe that CZ is to blame for FTX’s abrupt collapse.
“The punchline is that we all get a 50 billion dollar bill, and SBF gets to keep having low rent eyes wide shut parties,” Hoskinson added.
Binance Alleged Instrumental In FTX Fall
Remember that on November 6, 2022, CZ announced that Binance would liquidate its FTT holding worth more than $530 million when the exchange learned that FTX was lobbying against business players.
Following the tweet, a significant selloff caused the price of FTT to drop 10% in less than an hour.
Recently, many individuals have claimed that Binance had a vital role in the demise of the FTX exchange, which they attribute to CZ’s remarks after the FTX debacle.
Many people think Binance made the news solely to harm FTX, its rival, and Binance has constantly refuted claims that it had no direct involvement in FTX’s demise.
The FTX Fall
The FTX controversy began before Binance CEO announced that the exchange would sell its FTT holdings.
Also, the trouble for FTX began when cryptocurrency media outlet Coindesk revealed a $6 billion black hole in the exchange’s balance sheet, raising suspicions that the exchange had been mismanaging users’ money.
Two days later, an anonymous cryptocurrency analyst named Dirty Bubble Media said the exchange appeared bankrupt.
He continued by saying that FTX has been creating billions of dollars out of nothing.
FTX was lobbying against industry players, and CZ tweeted on November 6 that Binance would liquidate its FTT holdings.
As a matter of fact, Many FTX users had moved their money out of the exchange, and things had gotten out of hand.
The acquisition of FTX by Binance did not go well because US authorities started looking into the FTX story.
Therefore, SBF has no choice except to file for Chapter 11 bankruptcy with FTX and FTX.US.