CZ: Exit from FTX Equity Investment Due to SBF Poaching Employees and Malicious Disparagement, Related Litigation Ongoing

On February 11, Binance founder Changpeng Zhao (CZ) shared key details in an interview with the All-In podcast: - He first met FTX’s Sam Bankman-Fried (SBF) at a 2019 Singapore conference. - FTX initially proposed a joint venture (JV), which Binance rejected. A later proposal led to Binance acquiring a 20% stake in FTX. - Issues arose during the investment process, including malicious defamation and employee poaching. - Binance withdrew its investment in July 2021 and was not a deep-involved investor. - Ongoing litigation remains active, and specifics about FTX’s bankruptcy proceedings and compensation are unclear. Regarding presidential pardons, CZ revealed: - Applying for a pardon requires a lawyer to draft a petition outlining justifications like overprosecution or evidence of good conduct. - The U.S. President holds sole final decision-making power, with no fixed or standardized procedure for pardons. - Most past presidents issued pardons on their last day in office, though Biden has granted “preemptive pardons.” - A pardon is critical for Binance to enter the U.S. market smoothly and in full compliance. - Trump’s own legal challenges may, to some extent, aid the success of Binance’s pardon application.