Day 7: Post-Partum of Controversial Tweet, Ellison’s Testimony Decodes More Facts
The ongoing courtroom drama surrounding Sam Bankman-Fried’s trial has reached its seventh day, with Caroline Ellison’s testimony shedding light on crucial details. Ellison, former CEO of Alameda Research, had previously pleaded guilty as part of a cooperation agreement with U.S. authorities. Meanwhile, Bankman-Fried maintains his plea of not guilty and faces multiple charges.
The controversy revolves around a tweet by Binance CEO Changpeng Zhao (CZ), which allegedly contributed to the collapse of crypto exchange FTX. CZ’s tweet on November 6, 2022, announcing Binance’s decision to liquidate its FTX Token (FTT) holdings, triggered a chain reaction as retail investors withdrew their funds from FTX. This led to FTX halting withdrawals and eventually declaring bankruptcy.
CZ Rebuffed All the Claims
During the trial, CZ refuted claims that his tweet alone caused FTX’s downfall. He pointed out that Ellison herself had made social media posts on the same day, suggesting that Alameda’s offer to purchase Binance’s FTT holdings was the true catalyst for the token sell-off.
While Eliison Opened Some More Twists
Ellison’s testimony also revealed additional information, such as Bankman-Fried’s presidential aspirations and his pursuit of Saudi Crown Prince Mohammed bin Salman as a potential backer. However, when questioned by the defense team, Ellison admitted that Bankman-Fried may not have been aware of the risks faced by FTX customers’ funds.
Hot Take: The Scandal Unravels with Each Testimony
The ongoing trial involving Sam Bankman-Fried and Caroline Ellison continues to expose new details about the collapse of FTX. While CZ’s tweet has been implicated in the chain of events, the defense argues that other factors, such as Alameda’s offer to buy FTT holdings, played a significant role. As the trial progresses, it becomes clear that this scandal goes beyond a single tweet and involves complex connections within the crypto industry. With each testimony, more twists and turns are revealed, making this one of the most significant scandals in crypto history.
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