CZ’s new book, *Binance Life*, reveals the inside story behind FTX’s bankruptcy: he never seriously considered an acquisition, and signing a letter of intent was just a formality

Changpeng Zhao (CZ) has published a new book, Binance Life, revealing that at the time he never seriously considered acquiring FTX, that the letter of intent he signed was merely a formality, and that he directly pointed to the main reason for its collapse as the exposure of token floor prices. The book also reviews Binance’s development and the journey of regulatory challenges he faced.

CZ’s New Book Unmasks the Full Story of the FTX Collapse and Acquisition

The new book Binance Life: Memoirs of Luck, Resilience, and Protecting Users (Freedom of Money) by Binance founder Changpeng Zhao (CZ) has been officially published. In it, he reveals for the first time a range of behind-the-scenes details surrounding the 2022 FTX bankruptcy.

According to a report by CoinDesk, Zhao writes in the book that at the time, FTX founder Sam Bankman-Fried (SBF) asked him for billions of dollars of funding during a call—like ordering a Bologna sandwich—with an extremely casual, offhand attitude.

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

Tracing the true cause of the FTX collapse, Zhao points his finger at Alameda Research CEO Caroline Ellison, who was connected to the FTX trading firm.

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

Professional traders then aggressively went short, causing the FTT price to rapidly crash to $15 and even $5, and in just 72 hours, $6 billion fled FTX.

Image source: commons.wikimedia, CointelegraphFTX exchange former CEO SBF

Recapping the FTX Bankruptcy Event: From Asset Doubts to the Acquisition Falling Through

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

Soon after, on November 7, Zhao announced the liquidation of the FTT Binance held, based on risk management considerations, further triggering market panic and a surge in withdrawals.

Facing a liquidity crisis, on November 9 SBF announced that he had reached a strategic agreement with Binance. However, Binance later quickly said that after conducting due diligence, considering reports that FTX was allegedly 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 shortfall 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.

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Freedom of Money: Breaking Down Barriers to Transferring Wealth

Besides 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 reviews how Zhao 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 dollars in 2026 and more than 300 million users.

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

Regarding the meaning behind the English book title, Freedom of Money, Zhao explained that “freedom of money” represents how cryptocurrencies can break through obstacles in the traditional financial system.

He strongly 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 countries, withstand extreme fluctuations in local currencies, and enter global financial markets.

Further Reading:
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