The saga behind SBF’s once-thriving crypto empire has taken a dark turn, exposing a trail of secrets that could rival a Hollywood thriller. From mishandling customers’ funds for personal luxuries to plotting against rivals and a love story turned sour, this infamous incident reads like a gripping movie script. The latest revelation emerged in the form of a November 2022 internal document, presented as evidence in the ongoing trial.
In the memo, Bankman-Fried accused Binance, FTX’s rival, of orchestrating a malicious PR campaign against them. He alleged that Binance leaked an Alameda balance sheet to the media, triggering a chain of events that led to FTX’s downfall. To recall, CoinDesk, on November 2, published a report based on the leaked balance sheet, hinting at FTX’s vulnerable position. The after-effects of the article were catastrophic, causing ripples across the crypto industry. Binance, at the time of writing, remains silent in response to these allegations.
Next, the document also highlights TRON founder and Huobi’s advisor, Justin Sun, whom Bankman-Fried once contemplated as a potential investor to approach. However, he realized that Sun was closely associated with CZ. In his desperate efforts, SBF also pondered sharing a confident series of tweets, a move that Ellison confirmed Bankman-Fried had indeed executed.
Furthermore, in the document, the former CEO noted that the then-FTX had substantial capital but limited liquidity. Caroline Ellison, SBF’s former girlfriend and a star witness, clarified during the court proceedings that this indicated that out of the $12 billion in client assets on the exchange, FTX had only one-third available, amounting to “$4 billion to process their withdrawals.”
SBF’s Bribe To Chinese Officials
Amidst the trial, a pivotal moment arrived when Ellison, the ex-head of FTX-linked trading firm Alameda Research, delivered a damning testimony on October 10. She revealed Bankman-Fried’s attempts to unlock frozen funds on Asian crypto exchanges, detailing intricate schemes involving imbalanced trades and even bribing Chinese government officials.
Bankman-Fried faces seven fraud charges in this trial. Even if found innocent, he is slated for a second trial in March, facing additional counts. The courtroom drama continues, unfolding a scandalous tale that has gripped the crypto community.