Ex-FTX CEO Accuses Binance of Tanking His Exchange in Ongoing Court Trial
Summary:
The ongoing court proceedings against former FTX exchange CEO, Sam "SBF" Bankman-Fried reveals allegations that Binance leaked an Alameda financial statement to the media in 2022. The accusation was part of a memo, authored by Bankman-Fried that lists potential investors for a financial rescue. The trial, currently in its second week, sees Bankman-Fried facing various charges including conspiracy and fraud, connected to the fall of FTX.
Court proceedings in the ongoing criminal case against Sam "SBF" Bankman-Fried, the ex-head of FTX exchange, have exposed his belief that Binance leaked an Alameda financial statement to the press in 2022. Caroline Ellison, Alameda Research's previous chief, spoke on October 11th, disclosing a memo authored by Bankman-Fried on November 6, 2022. This note listed possible investors and contacts for potential financial rescue, accusing Binance of undertaking a media offensive against them, allegedly leaking a financial statement and subsequently publicizing their decision to sell $500 million worth of FTT in response.
A report by CoinDesk on November 2, 2022, based on supposed sightings of Alameda's financial statement indicating potential financial instability, was a pivotal moment preceding a major withdrawal from the exchange and its ultimate bankruptcy. Bankman-Fried pointed to FTX's solvency but lack of liquidity, with Ellison explaining that out of the $12 billion reported client assets, only $4 billion was on hand to facilitate withdrawals.
The memo also mentioned Justin Sun, the founder of the TRON network and an adviser for Huobi, as a potential investor, reporting his close ties with "CZ". Updates from the court reveal Ellison expressing stress when "CZ" tweeted about offloading his stock of FTX Tokens (FTT).
Bankman-Fried, the former FTX CEO, is in his second week of a criminal trial, facing seven charges of conspiracy and fraud connected to FTX's fall. He has pleaded not guilty. A second trial, set for March 2024, will bring an additional six charges, including bank fraud and conspiracy to bribe foreign officials. Ellison, a major witness, is set for cross-examination on October 12 by the defense's lawyers. The ongoing court drama is being covered on-site by Cointelegraph reporters, with continuous updates provided.
Published At
10/12/2023 1:57:33 PM
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