Over the last week I've posted various threads that centre on the #FTX Signing rights for the Miami Heat stadium and specifically the due diligence report by the Miami Dade Office of Inspector General. To provide some perspective as to the who the OIG is and what they do.
Ensuring Honesty and Efficiency
Miami-Dade County OIG was created to serve as a watchdog over County practices. Audits, investigations and legal/contract oversight – investigating fraud, waste and abuse, rendering findings based on facts and evidence.
miamidadeig.org/inspector-gene…
Miami-Dade County OIG was created to serve as a watchdog over County practices. Audits, investigations and legal/contract oversight – investigating fraud, waste and abuse, rendering findings based on facts and evidence.
miamidadeig.org/inspector-gene…
Why am I so fixated on an event that happened almost 2 years ago.
Because it provides an insight into the relationship between Binance and FTX in the form of an independent report by a government department for a government organisation.
Because it provides an insight into the relationship between Binance and FTX in the form of an independent report by a government department for a government organisation.
A report that was commissioned for the specific purpose of approving a $135m sponsorship deal for a stadium of one of the recognised sporting teams.
Central to that report were the majority and minority investors in FTX and FTX.US.
Central to that report were the majority and minority investors in FTX and FTX.US.
The majority - SBF and associates who are now facing criminal charges including fraud, conspiracy, money laundering and a bunch of other really bad stuff.
The minority - #CZ and #Binance associates.
a better description would be 'significant' not minority.
The minority - #CZ and #Binance associates.
a better description would be 'significant' not minority.
March 2021 an important date
At the date of approval CZ (& related) controlled 20% of FTX and FTX.US
within 3 months CZ had completely exited FTX for US$2.1Billion
At the date of approval CZ (& related) controlled 20% of FTX and FTX.US
within 3 months CZ had completely exited FTX for US$2.1Billion
The date is incredibly important as more probable than not that i) #Binance's exit from #FTX was being discussed while the naming rights was in progress, or ii) at the very least it was a significant catalyst resulting in the parting of ways.
Miami Dade OIG was engaged to undertake due diligence on FTX, its associated entities, majority and other shareholders.
The report makes it clear that the OIG had limited time to complete the due diligence and did not have direct access to all the targeted parties.
The report makes it clear that the OIG had limited time to complete the due diligence and did not have direct access to all the targeted parties.
Essentially the OIG relied searches of US and global registers, publicly available information and answers/confirmations from FTX executives/officers.
Basic information of Binance officers and FTX shareholders such as last known address - were NOT PROVIDED.
More problematic, the reported Binance domicile/operations was not only incorrect it did not match what would have been discovered in entity searches. #japan v #cayman's
More problematic, the reported Binance domicile/operations was not only incorrect it did not match what would have been discovered in entity searches. #japan v #cayman's
In just over 2 months after the naming rights was approved. Japan's regulator issued 'another' warning. Binance was not only operating in Japan without proper authorisation. They were doing business in the country without being registered.
finance.yahoo.com/news/japan-fsa…
finance.yahoo.com/news/japan-fsa…
Clearly Binance Holding Limited was not a company incorporated in Japan and while Binance was purported to operating in Japan...they were doing so illegally.
#CZ and #binance can play the we are the good guys card and say hey we didn't provide that misleading information that was provided by #FTX we had nothing to do with it. I call bullshit.
CZ can try to spin, deflect duck and dive. But there's no scenario that they are not tainted.
A couple of threads of scenarios (using the company name as the collective for each party) to illustrate;
A couple of threads of scenarios (using the company name as the collective for each party) to illustrate;
Binance declined to provide the info requested by OIG or to FTX in response to DD questions from OIG.
Resulting in FTX provided misleading (false) answers to the OIG.
Resulting in FTX provided misleading (false) answers to the OIG.
Its highly unlikely that Binance was not aware of the responses provided. Why would they not correct these clearly false statement?
Was it because they were negotiating a $2.1Billion exit from FTX?
Was it because they were negotiating a $2.1Billion exit from FTX?
or was it because to correct it they would have had to provide confirmations that they did not wish to disclose?
Or was it a combination of both?
Or was it a combination of both?
CZ himself confirmed the $2.1B exit and extrapolating the exit time line its likely any pre-transaction discussion/negotitations overlapped the Stadium Naming Rights discussions.
It would be remiss to note that somewhat coincidentally that there appears to have been a systematic reshuffling of the Binance Global empire during 2021.
adding previous tweet on same topic
https://twitter.com/intel_jakal/status/1608899176368336896?s=20&t=jtlqrlYZV2Kms4moev3qFw
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