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Sam Bankman-Fried FTX Trial: Binance Financial Leak Allegations

Sam Bankman-Fried FTX Trial: Binance Financial Leak Allegations

The ongoing criminal trial against Sam Bankman-Fried, former CEO of the FTX exchange, has uncovered some surprising allegations. In court, an internal document was shown indicating that Bankman-Fried believed that Binance leaked the financial balance sheet of Alameda, a cryptocurrency company with which FTX had connections, to the media in 2022.

These revelations have shaken the crypto world and triggered deeper scrutiny of relationships and business ethics in this rapidly growing sector.

The document presented in court, dating from November 6, 2022, has become a key piece in the trial.

In it, Bankman-Fried outlined a series of actions that suggested Binance was involved in a public relations campaign against Alameda and FTX, we reviewed an excerpt from Inner City journalist covering the trial.

Apparently SBF accused Binance of leaking a financial statement of Alameda, disseminating it on a blog and providing it to the CoinDesk platform.

Binance publicly announced that they were selling 500 million FTX Token (FTT) in response to this leak, while advising customers to be careful with FTX. This series of events contributed significantly to the collapse of FTX and its subsequent bankruptcy.

The Lack of Liquidity at FTX Also Became a Point of Discussion

Caroline Ellison, former CEO of Alameda Research, testified that despite reports claiming that FTX had assets worth $12 billion, only $4 billion were available to process withdrawals.

This revelation raises questions about financial transparency and asset management in the world of exchanges.

The document presented at the trial also shed light on potential investors, among whom Justin Sun, founder of the Tron network and advisor to Huobi, was mentioned.

The Lack of Liquidity at FTX Also Became a Point of Discussion

However, it was highlighted that Sun had a close relationship with Changpeng Zhao (CZ), the CEO of Binance, which raises questions about possible conflicts of interest in the world of cryptocurrencies.

The impact of these accusations and revelations on the trial is profound. Sam Bankman-Fried faces seven counts of conspiracy and fraud related to the collapse of FTX, to which he has pleaded not guilty.

In addition, a second trial is scheduled for March 2024, in which he will face six other charges, including bank fraud and foreign bribery conspiracy.

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