Witnesses Reveal Intense Rivalry between Sam Bankman-Fried and Changpeng Zhao
New revelations have emerged in Sam Bankman-Fried’s fraud trial, shedding light on his rivalry with Binance CEO Changpeng Zhao. Witnesses testified in a New York court, describing a once-friendly relationship that deteriorated as FTX gained prominence.
How the Crypto Kings Fell Out
Caroline Ellison, one of Bankman-Fried’s close associates, testified that his intention was to get regulators to crack down on Binance. Court documents revealed that SBF accused Binance of launching a coordinated attack while attempting to save FTX. The feud began positively when Binance invested in FTX and praised Bankman-Fried’s abilities.
However, as FTX’s influence grew, Bankman-Fried allegedly used it to turn regulators against Binance. This angered Zhao, who tweeted about not supporting those who lobby against industry players behind their backs.
CZ’s Tweet Led to FTX’s Downfall: Ellison
Zhao denied orchestrating FTX’s downfall through his tweet but instead blamed Bankman-Fried for focusing on fixing the company’s financial problems. The leak of the balance sheet preceding Zhao’s tweet remains an open question. Ellison testified that Zhao’s tweet aimed to harm Alameda and FTX more than sell FTT.
In an interview with Vanity Fair, Zhao expressed irritation about Bankman-Fried’s lobbying tactics and emphasized the importance of not bad-mouthing competitors.
Hot Take: The Power Struggle Between Crypto Titans
The testimonies in Sam Bankman-Fried’s fraud trial have revealed the intense rivalry between him and Changpeng Zhao. What started as a friendly relationship turned into a power struggle as FTX gained prominence. Bankman-Fried allegedly used his growing influence to turn regulators against Binance, which angered Zhao. The tweet from Zhao that coincided with the sale of FTT further fueled the feud. While Zhao denied orchestrating FTX’s downfall, the leak of the balance sheet and the subsequent market panic exposed FTX’s lack of liquidity. This trial highlights the complex dynamics and competition within the crypto industry.
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