CZ’s new book《Binance Life》reveals the inside story of FTX’s bankruptcy: he never seriously considered buying it, and the letter of intent was just a formality

Changpeng Zhao (CZ) has published a new book, 《Binance Life》, revealing that back then he never seriously considered acquiring FTX; the signed letter of intent was only a formality; and he directly points to the main cause of its collapse as exposing the token’s floor price. The book also reviews Binance’s development and the course of the regulatory challenges he has faced.

CZ’s new book reveals the full story behind the FTX collapse and acquisition

Changpeng Zhao (CZ), the founder of Binance, has officially published his new book 《Binance Life: Memoirs of Luck, Resilience, and Protecting Users》 (Freedom of Money). In the book, he впервые discloses many behind-the-scenes details of the 2022 FTX bankruptcy.

According to a report by CoinDesk, Zhao says in the book that at the time, FTX founder Sam Bankman-Fried (SBF) asked him for tens of billions of dollars in funding during a call, like he was asking for a Bologna sandwich—his attitude was extremely casual.

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

When exploring the real cause of FTX’s collapse, Zhao directs the blame at Caroline Ellison, CEO of the market maker Alameda Research, which was associated with the FTX trading firm.

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

Professional traders immediately went heavily short, leading the FTT price to rapidly crash to $15 and even $5; in just 72 hours, $6 billion in capital fled FTX.

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

Recalling the FTX bankruptcy: from doubts over assets to the breakdown of the acquisition

Looking back on the FTX bankruptcy, the trigger was a report published by CoinDesk on November 3, 2022, revealing that Alameda Research’s balance sheet had issues. Of its $14.6 billion in assets, as much as 40% was in the platform token FTT issued by FTX, raising market concerns about its lack of liquidity and being insolvent.

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

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

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

FTX Bankruptcy Special Report:
FTX’s 1-year anniversary: the thriving chapter》It had a growth explosion just 3 years after its establishment—why do even people in Taiwan love using it?

FTX’s 1-year anniversary: the downfall chapter》Foreign media fired the first shot, and SBF’s crypto empire collapsed in an instant

FTX’s 1-year anniversary: the embers chapter》The wounds and pain that can’t be erased—how can the crypto community stand up again?

Freedom of Money: breaking through the barrier of passing down money

In addition to revealing the inside story of the FTX bankruptcy, 《Binance Life》 also records Zhao’s life trajectory and the history of Binance’s development.

The book recounts how Zhao moved from rural China to Canada, and then founded Binance in 2017, growing it into the world’s largest crypto exchange by 2026, with an estimated valuation of $100 billion and more than 300 million users.

The book reveals that CZ faces regulatory challenges head-on, documenting his experience of being sentenced to four months in prison for violating the U.S. Bank Secrecy Act. He emphasizes that the relevant 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, Zhao explains that “money freedom” means that cryptocurrencies can break through obstacles in the traditional financial system.

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

Further reading:
Binance slanders The Wall Street Journal! Reports say the allegations involve Iranian money flows—U.S. Department of Justice launches a parallel investigation