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

Changpeng Zhao (CZ) publishes a new book, Binance Life, revealing that back then he never seriously considered acquiring FTX. He says the letter of intent was just a formality, and points directly to the real reason for its collapse: exposing token floor prices. The book also reviews Binance’s development and the journey through the regulatory challenges he faced.

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

The new book by Binance founder Changpeng Zhao (CZ), Binance Life: Memoirs of Luck, Resilience, and Protecting Users (Freedom of Money), has officially been released. For the first time, the book sheds light on many behind-the-scenes details of the 2022 FTX bankruptcy.

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

He revealed: “I have no interest in owning FTX, and I also have no interest in helping SBF. But to protect users and the industry, we may have to get involved. I made it clear that we won’t make any commitments. Our team will evaluate the relevant data, and then make a decision.”

When exploring the true cause of the FTX collapse, Zhao Changpeng points the finger at Caroline Ellison, CEO of the market maker Alameda Research associated with the FTX trading firm.

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

Professional traders immediately piled into short positions, causing the FTT price to crash rapidly to $15 and even $5. In just 72 hours, $6 billion in funds fled FTX.

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

Recalling the FTX bankruptcy: from asset suspicions to the acquisition falling apart

Looking back on the FTX bankruptcy, the spark was a report published by CoinDesk on November 3, 2022. It revealed that Alameda Research’s balance sheet had issues: of its $14.6 billion in assets, as much as 40% was comprised of the platform token FTT issued by FTX. This raised market concerns about its lack of liquidity and potential insolvency.

After that, on November 7, Zhao Changpeng, based on risk management considerations, announced the liquidation of the FTT Binance held, further triggering market panic and a wave of withdrawals.

Facing a liquidity crisis, on November 9, SBF announced that it 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. agencies, 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 United States on November 11, and SBF also stepped down from his position.

FTX bankruptcy special feature:
FTX’s 1-year anniversary: The flourishing chapter” It exploded in growth just 3 years after its founding—why do even people in Taiwan love it?

FTX’s 1-year anniversary: The downfall chapter” Foreign media fired the first shot—SBF’s crypto empire instantly collapsed

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

Freedom of Money: breaking through the traditional finance barrier

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

The book reviews how Zhao Changpeng moved from rural China to Canada, and then founded Binance in 2017, growing it into the world’s largest cryptocurrency 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, recording his experience of being sentenced to four months in prison for violating the U.S. Bank Secrecy Act. He emphasizes that the relevant charges did not involve fraud or money laundering, and that Binance paid a $4.3 billion fine for it.

Regarding the meaning behind the English book title Freedom of Money, Zhao Changpeng explained that “freedom of money” means that cryptocurrency can break down obstacles in the traditional financial system.

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

Further reading:
Binance slanders the Wall Street Journal! Reports allege involvement in Iranian money flows, and the U.S. Department of Justice simultaneously launches an investigation