Sam Bankman-Fried created his image of a young businessman focused on changing the world and was down to earth. However, like all things in life, the reality is far from this. In fact, he was involved and was probably the epicentre of one of the biggest scams in US history. His crypto exchange went bankrupt, and millions of users lost their money. But that’s not all, as new reports suggest that SBF even tried to sabotage crypto markets to save FTX.
SBF chose his exchange over the industry
Reports suggest that Sam Bankman-Fried attempted to destabilize the largest stablecoin in the crypto market, Tether, for his personal gain. The executives at Tether and even Binance’s CEO, CZ Zhao, were worried about this. This is why CZ even voiced his concerns against SBF. There was reportedly an argument between them as well in a group chat called “Exchange coordination” on November 10th.
It is said that Alameda Research was trying to depeg the USDT, probably so they could bag it below $1 and make profits. But this would have affected the industry negatively by causing a ripple effect and also panic investors. It would also reduce the trust we now have in USDT.
CZ Zhao told SBF in the group chat, “Stop trying to depeg stablecoins. And stop doing anything. Stop now, don’t cause more damage.” But it is obvious that Sam Bankman-Fried denied all these claims. But seeing all that SBF has been involved in, it’s hard to believe that he is telling the truth. In fact, this argument happened after Binance backed out from bailing FTX out of the mess they landed themselves in. And the reason was simple—FTX misused customer funds and was basically defrauding its customers.
Did Binance attack FTX?
Kevin O’Leary, the shark tank billionaire, said that Binance intentionally put FTX out of business. However, from what we can deduce from investigations and John Ray’s (the current CEO at FTX) testimony, all this mess has been FTX’s own doing. Plus, Binance CEO exited his position in FTX last year in July. So, that should not have affected the exchange now.
What are your thoughts as the conversation between SBF and CZ shows that he tried to sabotage crypto markets? And do you think this shows how self-centred he is? Let us know in the comments below. And if you found our content informative, share it with your family and friends.
Also Read: Shaq says he was just a paid spokesperson for FTX.
