CZ’s new book “Binance Life” reveals the inside story behind FTX’s bankruptcy: they never seriously planned to acquire it, and signing a letter of intent was just a formality

Changpeng Zhao (CZ) publishes a new book, “Binance Life,” revealing that back then he had never seriously considered acquiring FTX. He signed a letter of intent only as a formality, and directly pointed to the collapse being caused by the exposure of the token’s floor price. The book also reviews Binance’s development and the course of his journey facing regulatory challenges.

CZ’s new book reveals the ins and outs of the FTX collapse and acquisition

Changpeng Zhao (CZ), the founder of Binance, has officially published his new book “Binance Life: A Memoir of Luck, Resilience, and Protecting Users” (Freedom of Money). In the book, he for the first time discloses many behind-the-scenes details of the 2022 FTX bankruptcy.

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

He revealed: “I have absolutely no interest in owning FTX, and I’m not particularly interested in helping SBF either. But to protect users and the industry, we may have to step in. I clearly stated that we wouldn’t make any commitments. Our team will evaluate the relevant data and then make a decision.”

When probing the real root cause of the FTX collapse, Zhao pointed the finger at Caroline Ellison, CEO of the market maker Alameda Research associated with the FTX exchange.

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

Professional traders then immediately began aggressively shorting, causing the FTT price to rapidly plunge to $15 and even $5. In just 72 hours, $6 billion in funds fled FTX.

Source: commons.wikimedia, Cointelegraph FTX exchange former CEO SBF

Recap of the FTX bankruptcy: from asset doubts to the collapse of the acquisition

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

Then, on November 7, Zhao announced he would liquidate the FTT Binance held based on risk-management considerations, further fueling market panic and a wave of withdrawals.

Facing a liquidity crisis, SBF announced on November 9 that he had reached a strategic agreement with Binance. However, Binance quickly later stated that after conducting due diligence, considering news that FTX was allegedly mishandling customer funds and facing U.S. regulatory investigations, it officially 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 U.S. on November 11, and SBF also stepped down from his position.

FTX bankruptcy record special:
FTX’s one-year anniversary: the thriving chapter》It grew explosively after just 3 years—why do even people in Taiwan love using it?

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

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

Freedom of Money: breaking down barriers in transmitting money

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

The book looks back on Zhao’s move from rural China to Canada, and in 2017 he founded Binance, growing it into the world’s largest cryptocurrency exchange, with a valuation of $100 billion in 2026 and more than 300 million users.

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

Regarding the meaning behind the English title “Freedom of Money,” Zhao explained that financial freedom means cryptocurrencies can break through barriers of 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 accuses the Wall Street Journal of defamation! The report alleges involvement in Iranian funds flow; the U.S. Department of Justice also launches an investigation