Bankman-Fried blames CZ for the collapse of FTX
CZ, CEO of Binance, orchestrated an evil plan that caused FTX to fall from the top of the world, according to Sam Bankman-Fried.
Sam Bankman-Fried and/or his team are regularly found to be engaging in unethical practices by the crypto ecosystem. However, FTX and Alameda Research founders deny responsibility for their sudden failures, claiming they were unaware of any wrongdoing. But whose fault is it? Sam already has someone in mind.
The former CEO of FTX, Sam Bankman-Fried, blamed Binance CEO Changpeng Zhao once again for FTX’s failure in an interview with Forbes on December 12. Zhao, according to Bankman-Fried, plotted to sabotage FTX to eliminate competition.
CZ, according to Bankman-Fried, was unaware of the negative impact this would have on the crypto market and the broader industry.
Exactly what happened?
FTX and Binance have been in conflict for some time, but the breaking point came on November 6, when Changpeng Zhao, CEO of Binance, announced plans to liquidate all FTT tokens held by the company (FTT is FTX’s native token). In response to recent revelations about FTX’s liquidity, this was done.
On the same day, SBF stated that FTX had no liquidity issues and that the rumors spread by its competitors were only meant to harm the company’s reputation.
In response to massive user withdrawals, SBF requested cooperation from CZ and Binance on November 8. To stabilize its reserves, the exchange paused withdrawals.
FTX was intended to be bought by Binance, but the deal ended before it even began. SBF said, “Well played; you won,” two days after thanking CZ for his assistance.
Finally, on November 11, SBF filed for bankruptcy for FTX, followed by its Bahamas-based entity five days later, launching a series of investigations into how one of the world’s most valuable exchanges could go bankrupt in days, especially given its valuation of more than $30 billion.
CZ Expresses His Opinion
CZ spoke out against SBF on December 9, claiming that SBF spent millions of dollars on FTX promotion campaigns without the consent of its clients. He claimed that SBF’s recent interviews were intended to divert attention away from its client’s multibillion-dollar loss.
CZ later stated that this was never a competition and that the failure of FTX was not a victory for anyone. Even though there were no winners, there were many losers. Aside from all of the clients who lost money and the string of bankruptcies announced by businesses that were exposed to FTX, Sam Bankman-Fried was arrested in the Bahamas just a few hours ago.
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