Presented in the lawsuit against Sam Bankman-Fried (SBF), a document dated November 2022 shows that the FTX founder considered Binance a major competitor and accused its management of leaking confidential information to the media. The Block reports this.
In particular, he blamed the largest crypto exchange by capitalization for the leak of Alameda Research’s balance sheet to CoinDesk.
On November 2, the publication, citing a “private document,” reported that trading subsidiary FTX was in a potentially precarious position because the majority of its collateral was the FTT token.
“[Binance] drained the balance, blogged about it, gave it to CoinDesk, and then publicly announced they were selling $500 million worth of FTT while warning customers to be wary of FTX,” the SBF note said.
It is likely that this sequence of events actually served as a catalyst for the collapse of FTX and Alameda, since after the injection FUD clients rushed to withdraw funds, but there was not enough collateral.
In the same document, Bankman-Fried named Tron founder and HTX advisor Justin Sun as a potential investor, but left the note “close to [главе Binance] Changpeng Zhao.”
SBF also stressed in the note that FTX is “reasonably capitalized but not infinitely liquid.” However, the document contained a footnote according to which out of $12 billion of client funds, only one third was available for withdrawal – $4 billion.
Earlier, ex-Alameda programmer Aditya Baratwaj told how the company lost at least $190 million due to a careless approach to security issues. Many company employees fell for phishing and fraud.
Let us remember that the day before, the former CEO of the trading firm, Caroline Ellison, made a confession in court. She revealed that SBF planned to become president and also shared a list of things that “pissed off” him.
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