CZ's new book 《Binance Life》 reveals the inside story behind FTX's bankruptcy: he never seriously considered acquiring it—signing a letter of intent was just for formality

Chang Pengzhao (CZ) publishes a new book, 《Binance Life》, revealing that at the time he never seriously considered acquiring FTX. He signed a letter of intent only as a formality, and directly points out that the main reason for its collapse was exposure of the token’s floor price. The book also reviews Binance’s development, as well as the journey he faced with regulatory challenges.

CZ’s New Book Unveils the Whole Story of the FTX Crash and the Acquisition

The new book by Binance founder Chang Pengzhao (CZ), 《Binance Life: Memoirs of Luck, Resilience, and Protecting Users》 (Freedom of Money), has officially been published. For the first time, the book reveals many behind-the-scenes details of the 2022 FTX bankruptcy.

According to a report from CoinDesk, Chang Pengzhao writes in the book that back then, FTX founder Sam Bankman-Fried (SBF) asked him for billions of dollars over a call, like he was asking for a Bologna sandwich, with an extremely casual attitude.

He reveals: “I had absolutely no interest in owning FTX, and I had no real interest in helping SBF. But to protect users and the industry, we may have to get involved. I clearly stated that we will not make any commitments. Our team will evaluate the relevant data, and then we’ll make a decision.”

When probing the real cause of the FTX crash, Chang Pengzhao points the finger at Caroline Ellison, the CEO of the market maker Alameda Research associated with the FTX trading firm.

He believes that Ellison’s public proposal at the time to acquire the FTT tokens held by Binance for $22 was a fatal mistake—equivalent to exposing the floor price to the market.

Professional traders then quickly went heavily short, causing the FTT price to plummet rapidly to $15 and even $5. In just 72 hours, $6 billion in funds fled FTX.

Image source: commons.wikimedia, Cointelegraph FTX exchange former CEO SBF

Recapping the FTX Bankruptcy: From Asset Doubts to the Collapse of the Acquisition

Looking back at the FTX bankruptcy, the fuse was a report published by CoinDesk on November 3, 2022, which revealed problems with Alameda Research’s balance sheet. Of its $14.6 billion in assets, as much as 40% was made up of FTT, the platform token issued by FTX, raising market concerns about its lack of liquidity and insolvency.

After that, on November 7, Chang Pengzhao announced the liquidation of the FTT held by Binance based on risk-management considerations, further fueling market panic and a wave of withdrawals.

Facing a liquidity crisis, on November 9 SBF announced that it had reached a strategic agreement with Binance. However, Binance later quickly said that after conducting due diligence, considering reports that FTX had allegedly mishandled customer funds and was facing investigations by U.S. institutions, it officially announced on November 10 that it would abandon the acquisition.

Because the funding gap could not be filled, FTX ultimately filed for Chapter 11 bankruptcy reorganization in the United States on November 11, and SBF also stepped down from his position.

FTX Bankruptcy Special Report:
FTX’s One-Year Anniversary: The Flourishing Chapter》Grew fast just 3 years after it was founded—why do even Taiwanese people love using it?

FTX’s One-Year Anniversary: The Downfall Chapter》Foreign media fired the first shot—SBF’s crypto empire collapsed in an instant

FTX’s One-Year Anniversary: The Embers Chapter》The irreparable harm and pain—how can the crypto community stand back up again?

Freedom of Money: Breaking Through the Barrier of Misconception

In addition to revealing the behind-the-scenes story of the FTX bankruptcy, 《Binance Life》 also documents Chang Pengzhao’s life trajectory and Binance’s development history.

The book reviews how Chang Pengzhao moved from rural China to Canada, and in 2017 founded Binance, growing it into the world’s largest cryptocurrency exchange, with an estimated valuation of $100 billion in 2026 and over 300 million users.

The book reveals that CZ calmly faced regulatory challenges and recorded his experience of being sentenced to four months in prison for violating the U.S. Bank Secrecy Act. He emphasized that the related allegations did not involve fraud or money laundering, and that Binance paid a $4.3 billion fine for this.

Regarding the meaning behind the English book title Freedom of Money, Chang Pengzhao explained that “money freedom” means that cryptocurrencies can break through barriers in the traditional financial system.

He firmly believes that cryptocurrencies can play a key role in expanding global financial accessibility, especially in helping people in developing countries who lack banking infrastructure—allowing them to move funds across borders, withstand severe local currency volatility, and enter global financial markets.

Further reading:
Binance Slapped with Defamation Accusations by the Wall Street Journal! Report Claims It Involves Iranian Money Flows—U.S. Department of Justice Also Launches an Investigation