FTX founder explains why Binance is selling its stake: an amicable parting

On July 20th, the cryptocurrency exchange FTX announced its valuation at $18 billion, completing the largest funding in industry history of $900 million, with a strong lineup of investors. However, Binance, as an early investor in FTX, has reportedly relinquished its equity in FTX recently. FTX founder SBF discussed this matter in a media interview.

FTX Buys Back Binance Stake, Parts Ways Amicably with CZ

FTX founder SBF stated: "We recently bought back Binance's stake and removed it from our capitalization table."

Due to our respective roles in the industry, I believe this is reasonable. This will also give us more flexibility moving forward.

SBF mentioned that he had a sincere conversation with Binance founder Changpeng Zhao about parting ways, and they both agreed on this direction. SBF believes that Binance has obviously done well in terms of investments, which is also a win for them.

In an interview with Forbes, Changpeng Zhao also confirmed the divestment and expressed satisfaction with FTX's growth.

Discussing Binance's Regulatory Troubles, SBF: Proactive and Timely Response Needed

Binance has recently faced regulatory warnings and restrictions from multiple countries. SBF mentioned that he did not participate in their discussions with regulators, so he can only speculate. SBF stated: "I still have to say, we are working very hard to cooperate with regulators. When you don't do this, or if your response is slow or inflexible, it will make regulators feel that they have no choice but to enforce the law."