After Sam Bankman-Fried’s FTX cryptocurrency exchange collapsed and more than a million debtors lost money, Binance CEO Changpeng Zhao “CZ” declared him “one of the greatest fraudsters in history” in his latest Twitter thread on December 6th.
He posted a list of wrong narratives that he observed. According to the tweet, it is untrue to say that a third party killed FTX. Because FTX stole billions of dollars in user money, they killed both themselves and their customers. They argue that SBF had good intentions but made a few blunders, yet lying is never done with good motives.
The next is that FTX was destroyed by CZ’s tweet, and Binance CEO asserts that a tweet cannot ruin a good business. Possibly, Caroline’s tweet from 16 minutes after CZ on November 6th was what caused people to stop using FTT.
Binance CEO Changpeng Zhao said:
SBF perpetuated a narrative painting me and other people as the “bad guys.” It was critical in maintaining the fantasy that he was a “hero.” SBF is one of the greatest fraudsters in history, he is also a master manipulator when it comes to media and key opinion leaders.
Nevertheless, despite the consequences for the larger crypto ecosystem, Changpeng Zhao emerged victorious from the collapse of the crypto empire known as FTX. Last month, the CEO of Binance saw his primary opponent almost vanish in a couple of weeks, which caused trade on the platform to increase by 30%.
Allegations On FTX Founder Sam Bankman-Fried
A previously known third-largest cryptocurrency exchange in the world, FTX, filed for bankruptcy in November after consumers withdrew billions from the exchange in a couple of days, forcing a halt to withdrawals.
Sam Bankman-Fried, the creator of FTX, also goes by the nickname SBF and has been charged with utilizing user money to fund his trading company, Alameda Research. However, these allegations of deliberate fraud were again refuted by SBF in a recent interview with DealBook.
Bankman-Fried claimed that he was responsible for the failure of both companies during his first network interview with ABC News, in which he denied knowing of any “improper” use of users’ funds. Additionally, he admitted to not knowing what had been happening at Alameda during the previous year in an interview with New York Magazine.
However, at Alameda Research, it is believed that $8 billion in customer assets went missing to cover astronomical losses. As of the right moment, both companies are insolvent and have debts totaling billions of dollars.
“In his 40 years of legal and restructuring experience,” John Ray III, the new CEO of FTX, claimed that he had never seen such a total breakdown of controls and such a complete lack of reliable financial information as occurred here. The same Ray who oversaw Enron’s bankruptcy in the 2000s is in presided now.
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