HomeCrypto StartupsSBF attempted to destabilize the cryptocurrency market in order to save FTX:...

SBF attempted to destabilize the cryptocurrency market in order to save FTX: Report


Alameda Research’s trades were reportedly focused on depeg Tether’s stablecoin.
According to reports on December 9, Tether executives and Binance CEO Changpeng “CZ” Zhao were concerned that Sam Bankman-Fried (SBF), former FTX CEO, was attempting to destabilize the crypto market in order to save the now-bankrupt exchange.

Messages from a Signal group chat titled “Exchange coordination” seen by The Wall Street Journal reveal an argument between CZ and SBF on Nov. 10 about Tether’s stablecoin Tether USDT tickers down $1.00.

According to the report, CZ and others in the group were concerned that Alameda Research’s trades would depeg the stablecoin, causing a ripple effect in crypto prices.

In a statement to the WSJ, SBF denied the allegations. Among those in the Signal group are Kraken co-founder Jesse Powell and Paolo Ardoino, chief technology officer of Tether.

The alleged altercation occurred just one day after Binance announced that it would not bail out its troubled competitor FTX, citing “reports regarding mishandled customer funds and alleged US agency investigations.” Tether’s Ardoino also stated on November 10 that the company has no “plans to invest or lend money to FTX/Alameda.”

“Stop trying to depeg stablecoins. And stop doing anything. Stop now, don’t cause more damage.”

According to Cointelegraph, new information about the failed agreement between Binance and FTX was revealed on December 9. CZ referred to Bankman-Fried as a “fraudster” on Twitter, claiming that Binance exited its position in FTX in July 2021 after becoming “increasingly uncomfortable with Alameda/SBF.”

SBF responded by claiming that Binance “threatened to walk at the last minute,” accusing CZ of lying about his role in the transaction.

On November 11, FTX Group and nearly 130 companies, including FTX Trading, FTX US, and Alameda Research, filed for bankruptcy in the United States, citing a “liquidity crunch.”

SBF has been named in seven class action lawsuits and numerous probes and investigations since FTX’s bankruptcy, including a market manipulation probe by federal prosecutors.


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