SBF tried to destabilize crypto market to save FTX: Report

Tether executives and Binance CEO Changpeng “CZ” Zhao disquieted that Sam Bankman-Fried (SBF), erstwhile FTX CEO, was attempting to destabilize the crypto marketplace aiming to prevention the now-bankrupt exchange, according to reports connected Dec. 9.

Messages seen by The Wall Street Journal of a Signal radical chat named "Exchange coordination" reveals an statement betwixt CZ and SBF connected Nov. 10 astir Tether's stablecoin USDT. Members successful the Signal radical see Kraken co-founder Jesse Powell, Paolo Ardoino, main exertion serviceman of Tether, among others.

According to the report, CZ and others successful the radical disquieted that trades made by Alameda Research were focusing connected depeg the stablecoin, which would person a ripple effect successful crypto prices. Binance CEO reportedly confronted SBF:

“Stop trying to depeg stablecoins. And halt doing anything. Stop now, don’t origin much damage.”

SBF denied the claims successful a connection to the WSJ.

The alleged statement connected the Signal radical happened a time after Binance announced that it wouldn't bail out its troubled rival FTX, citing “reports regarding mishandled lawsuit funds and alleged US bureau investigations.” On Nov. 10, Tether's Ardoino besides said the institution have no “plans to put oregon lend wealth to FTX/Alameda.”

As reported by Cointelegraph, caller details astir the failed statement betwixt Binance and FTX were revealed connected Dec. 9. In a twitter thread, CZ referred to Bankman-Fried arsenic a “fraudster,” saying Binance exited its presumption successful FTX successful July 2021 aft becoming “increasingly uncomfortable with Alameda/SBF.” SBF was “unhinged” astatine the speech pulling out, according to Binance's CEO.

In response, SBF claimed that Binance “threatened to locomotion astatine the past minute”, accusing CZ of lying astir his relation successful the deal.

On Nov 11, FTX Group and astir 130 companies - including FTX Trading, FTX US, nether West Realm Shires Services, and Alameda Research - filed for bankruptcy successful the United States citing a "liquidity crunch”.

Since FTX's bankruptcy, SBF has been named successful 7 people enactment lawsuits and galore probes and investigations, including a marketplace manipulation probe by national prosecutors.