SBF tried to destabilize the crypto market to save FTX: Report
Tether executives and Binance CEO Changpeng “CZ” Zhao are concerned that Sam Bankman-Fried (SBF), the former CEO of FTX, is trying to disrupt the crypto market in an attempt to save the now-bankrupt exchange, according to reports on December 9.
The Signal Group discussion “Exchange Coordination” seen by the Wall Street Journal shows a debate between CZ and SBF on November 10 about Tether’s stablecoin USDT.
According to the report, CZ and others in the group at Alameda Research focused on stablecoin trading, which has a significant impact on crypto prices. Binance CEO reportedly confronted SBF:
“Stop trying to shape stablecoins. And stop doing anything. Stop now, don’t cause more damage.
SBF denied the claims in a statement to the WSJ. Signal team members include Kraken co-founder Jesse Powell, Paolo Arduino, Tether’s chief technology officer, and others.
The alleged dispute comes a day after Binance announced it would not bail out its troubled competitor FTX, citing “reports of seized client funds and US agency investigations.” On November 10, Tether Arduino said the company “has no plans to invest or lend money to FTX/Alameda.”
As reported by Cointelegraph, new details about the failed agreement between Binance and FTX were revealed on December 9. In a twitter thread, CZ. mentioned Binance vacated its position in FTX in July 2021 after calling it a “fraud” for Bankman-Fried and leaving “alameda/SBF struggling”. According to the CEO of Binance, SBF was “unlocked” when the exchange was launched.
In response, SBF accused CZ of lying about its role in the deal, saying Binns “threatened to walk out at the last minute.”
In the year On November 11, FTX Group and about 130 companies – FTX Trading, FTX US, under West Real Shares Services and Alameda Research – filed for bankruptcy, citing “liquidity crunch” in the United States.
Since the FTX bankruptcy, SBF has been named in seven class action lawsuits and numerous probes and investigations, including a market manipulation investigation by federal prosecutors.
