[ad_1]
In line with former Alameda Analysis CEO Caroline Ellison, a single tweet from Binance CEO Changpeng Zhao (CZ) contributed to the failure of cryptocurrency trade FTX.
Testifying in Sam “SBF” Bankman-Fried’s legal trial on Oct. 12, Ellison reportedly placed a part of the blame for the collapse of FTX on CZ’s social media exercise. Within the now well-known tweet on X (previously Twitter) from Nov. 6, 2022, CZ announced that Binance could be liquidating its holdings of FTX Token (FTT) “as a result of current revelations which have got here [sp] to gentle”.
As a part of Binance’s exit from FTX fairness final yr, Binance acquired roughly $2.1 billion USD equal in money (BUSD and FTT). As a result of current revelations which have got here to gentle, we’ve determined to liquidate any remaining FTT on our books. 1/4
— CZ Binance (@cz_binance) November 6, 2022
The liquidation of the tokens, in keeping with many studies, brought about retail buyers to observe Binance’s instance and withdraw funds from FTX. The run on the platform led to FTX halting withdrawals and submitting for chapter on Nov. 11.
In line with Ellison, though the tweet “contributed” to FTX’s collapse, the principle cause was Alameda borrowing $10 billion from the trade “it couldn’t repay”. She first took the stand in SBF’s trial on Oct. 10, testifying to Bankman-Fried directing her to have Alameda take billions of {dollars} from FTX with out customers’ consent.
CZ pushed again in opposition to claims considered one of his tweets “destroyed FTX” in a Dec. 6 thread, saying “no wholesome enterprise could be destroyed by a tweet”. He pointed to Ellison’s personal social media exercise from Nov. 6, claiming Alameda’s supply to purchase Binance’s FTT holdings “was the true trigger for individuals to dump” the tokens.
4. “CZ’s tweet destroyed FTX”
No wholesome enterprise could be destroyed by a tweet.
Nonetheless, there was a tweet which will have, Caroline’s tweet 16 minutes after mine on Nov 6. Knowledge reveals it was the true trigger for individuals to dump FTT:https://t.co/yWFqKvbqMU
— CZ Binance (@cz_binance) December 6, 2022
Among the many info offered by the previous Alameda CEO at trial included Bankman-Fried’s ambition to develop into the President of the US, creating a number of “different” spreadsheets of Alameda’s financials to current to Genesis, and SBF trying to Saudi Crown Prince Mohammed bin Salman as a possible backer of the trade. Her testimony on cross examination from protection counsel Mark Cohen appeared to deal with Bankman-Fried’s data of Alameda’s operations.
On questioning from Cohen, Ellison testified that she “may need stated that [SBF] may not have identified” about her issues “placing FTX clients’ funds in danger”. Assistant U.S. Lawyer Danielle Sassoon referred to as the declare “obscure”.
Associated: FTX hacker strikes $120M amid Sam Bankman-Fried trial: Report
Ellison took the stand on the seventh day of SBF’s legal trial, which started on Oct. 3. She was one of many first FTX and Alameda insiders to plead responsible as a part of an settlement with U.S. authorities for her testimony.
Bankman-Fried has pleaded not responsible to seven legal prices in his first trial, anticipated to run via November. He’ll face an extra 5 counts in a March 2024 trial.
Journal: Are you able to belief crypto exchanges after the collapse of FTX?
[ad_2]
Source link