Evidence Reveals SBF’s Belief that Binance Leaked Alameda Balance Sheet
In the ongoing criminal trial against Sam “SBF” Bankman-Fried, former CEO of FTX crypto exchange, evidence presented in court suggests that SBF believed Binance leaked an Alameda balance sheet to the media in 2022. According to Caroline Ellison, former CEO of Alameda Research, a memo created by SBF on November 6, 2022, outlined possible investors and parties to contact for a bailout. The memo stated that Binance was engaging in a PR campaign against them and had leaked the balance sheet to Coindesk before publicly announcing the sale of $500 million worth of FTT tokens.
Coindesk’s Role in the Run on FTX
On November 2, 2022, CoinDesk reported that it had seen the balance sheet from Alameda and suggested that the firm may not be in good standing. This revelation played a significant role in the events leading up to the run on FTX and its subsequent bankruptcy. The document presented in court also revealed that Justin Sun, founder of Tron network and Huobi adviser, was a potential investor but had close ties to Binance CEO Changpeng Zhao (CZ).
The Stress Caused by CZ’s Tweets
During her testimony, Ellison expressed her stress when Changpeng Zhao tweeted about liquidating his share of FTX Token (FTT). She clarified that they did not have enough money at the time despite CZ characterizing the delay as being related to anti-spam and nodes.
Bankman-Fried’s Criminal Trial
This is currently the second week of Sam Bankman-Fried’s criminal trial. He is facing seven charges related to conspiracy and fraud in connection with the collapse of FTX. Bankman-Fried has pleaded not guilty to these charges. Another trial is scheduled for March 2024, during which he will face six additional charges, including bank fraud and foreign bribery conspiracy.
Hot Take: Bankman-Fried’s Belief in Binance’s Role
The ongoing criminal trial against Sam “SBF” Bankman-Fried has revealed his belief that Binance leaked an Alameda balance sheet to the media in 2022. This revelation raises questions about the relationship between the two prominent crypto exchanges and their potential involvement in the events leading up to the collapse of FTX. As the trial continues, more details may emerge regarding the extent of Binance’s role and its impact on FTX’s downfall. This case serves as a reminder of the interconnectedness and potential vulnerabilities within the crypto industry, highlighting the need for transparency and accountability among market participants.
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