CZ's Memoir Reveals the Truth Behind Binance's Failed FTX Acquisition

Binance founder Changpeng Zhao, widely known as CZ, has opened up about the dramatic events surrounding FTX's collapse in November 2022 in his newly released memoir, Freedom of Money. Among the most striking revelations is how Sam Bankman-Fried casually requested billions of dollars during a phone call — an ask CZ describes as shockingly nonchalant, likening it to ordering a simple sandwich. According to CZ, he never genuinely intended to follow through with acquiring FTX, signing the non-binding Letter of Intent purely as a procedural step while reserving the right to walk away after reviewing the financials.

CZ points to a critical turning point that accelerated FTX's downfall. When Alameda Research CEO Caroline Ellison publicly announced she would purchase Binance's FTT token holdings at $22 each — a move meant to prop up the market — she inadvertently revealed her price floor. Professional traders immediately exploited this information by shorting FTT below that level. The token's value quickly spiraled from $22 to $15, then to $10, and eventually to $5. The market panic that followed triggered approximately $6 billion in FTX withdrawals within just three days, sealing the exchange's fate.

The memoir also sheds light on a previously undisclosed Signal group chat called "Exchange Collaboration," created during the Terra/LUNA crisis earlier that year. The group included top industry figures such as Brian Armstrong of Coinbase and Jesse Powell of Kraken. Although both DOJ and SEC investigators later scrutinized the group for potential collusion, CZ firmly denies any wrongdoing took place.

Binance itself wasn't left unscathed, absorbing significant losses on its FTT holdings and facing a single-day withdrawal surge of $7 billion in December. Nevertheless, CZ says he remained calm throughout, confident in Binance's fully reserved user funds — a confidence that proved justified as deposits rebounded within weeks.