The question of the involvement of Changpeng Zhao (CZ), the CEO of Binance in the collapse of FTX, has been animating the Web for several days. Some, including the head of the exchange, dismissed this idea out of hand, deeming it absurd. Caroline Ellison, key witness in the ongoing FTX trial, doesn’t see it that way.
Caroline Ellison accuses Binance CEO of harming crypto firm FTX…
A few days ago, pro XRP lawyer John Deaton reacted virulently to the alleged involvement of Binance in the fall of the crypto firm FTX. Obviously, this was not enough to settle the story since Caroline Ellison brought it up again.
The ex-girlfriend of Sam Bankman-Fried, managing director of Alameda Research at the time of the FTX disaster, also accuses Binance of having contributed to this bankruptcy. The ex-executive points out the role of CZ in this disappointment which is still shaking up the crypto ecosystem.
While testifying in the recently opened FTX trial, Caroline Ellison placed some of the blame for FTX’s downfall on CZ’s social media activity.
She referred in particular to a tweet posted on “recent leaked revelations”.
…Through a killer tweet
For Caroline Ellison, this tweet undoubtedly precipitated the fall of FTX. Because, by liquidating its FTX cryptos, Binance insidiously encouraged individual investors to follow its example.
The consequence, she adds, is that this led to a massive withdrawal of funds from FTX. A sudden exodus that led FTX to halt crypto withdrawals and ultimately declare bankruptcy on November 11, 2022.
However, Caroline Ellison does not deny the direct responsibility of FTX managers in the collapse of the crypto company. It is clear, according to her, that the borrowing by Alameda Research of $10 billion constitutes the main reason for the bankruptcy of the exchange.
A loan taken out when the company was unable to repay it. Moreover, on the orders of Sam Bankman-Fried, who did not require and obtain explicit consent from users. Changpeng Zhao (CZ) defended himself against the accusations against him.
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