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Written by Ana Paula Pereira via CoinTelegraph.com,
Transactions made by Alameda Research reportedly focused on the depeg stablecoin Tether…
Transactions made by Alameda Research reportedly focused on the depeg stablecoin Tether. Image: Cointelegraph.
Tether executives and Binance CEO Changpeng CZ Zhao feared former FTX CEO Sam Bankman-Fried (SBF) was trying to destabilize the crypto market in a bid to save the now bankrupt exchange, according to information from December 9.
Messages seen by the Wall Street Journal from a Signal group chat named “Exchange coordination” reveal a dispute between CZ and SBF on Nov. 10 over Tether’s USDT stablecoin. Members of the Signal group include Kraken co-founder Jesse Powell, Tether CTO Paolo Ardoino, among others.
According to the report, CZ and other members of the group feared that the transactions made by Alameda Research were focused on the depeg of the stablecoin, which would have a ripple effect on crypto prices. Binance CEO allegedly confronted SBF:
Stop trying to depeg stablecoins. And stop messing around. Stop now, cause no more damage.
SBF denied the allegations in a statement to the WSJ.
The alleged row over Signal Group came a day after Binance announced it would not bail out struggling competitor FTX, citing reports of mismanaged client funds and alleged investigations by US agencies. On Nov. 10, Tether’s Ardoino also said the company has no plans to invest or lend money to FTX/Alameda.
As reported by Cointelegraph, new details about the failed deal between Binance and FTX were revealed on December 9. In a Twitter thread, CZ called Bankman-Fried a fraud, claiming that Binance left its position in FTX in July 2021 after becoming increasingly uncomfortable with Alameda/SBF. SBF was upset by the withdrawal from the exchange, according to Binance CEO.
In response, SBF claimed that Binance threatened to leave at the last minute, accusing CZ of lying about his role in the deal.
On Nov. 11, FTX Group and nearly 130 companies — including FTX Trading, FTX US, under West Realm Shires Services, and Alameda Research — filed for bankruptcy in the United States citing a “liquidity crunch.”
Since the FTX bankruptcy, SBF has been named in seven class action lawsuits and numerous inquiries and investigations, including a market manipulation investigation by federal prosecutors.
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