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SBF Tried to Destabilize Crypto Market to Save FTX: Report

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Tether executives and Binance CEO Changpeng “CZ” Zhao expressed concern that former FTX CEO Sam Bankman-Fried (SBF) was trying to destabilize the crypto market with the aim of saving the now bankrupt exchange, depending to reports on Dec. 9.

Messages seen by The Wall Street Journal in a group chat called “Coordinating Exchange” reveal an argument between CZ and the SBF on November 10 over the USDT stablecoin.

According to the report, CZ and others in the group were concerned that deals conducted by Alameda Research were focused on cryptocurrency mining, which would have a ripple effect on cryptocurrency prices. The Binance CEO reportedly confronted the SBF:

“Stop trying to crack stablecoins. And stop doing anything. Stop now, don’t do any more damage.”

The SBF denied the allegations in a statement to the Wall Street Journal. Members of the Signal group include Kraken co-founder Jesse Powell, and Paolo Ardoino, Tether’s chief technology officer, among others.

The alleged argument occurred one day later Binance has announced that it will not bail out troubled rival FTX, citing “reports of client money mismanagement and alleged US agency investigations.” On November 10, Tether Arduino also said about the company It has “no plans to invest or lend money to FTX/Alameda.”

As reported by CointelegraphOn December 9, new details about the failed agreement between Binance and FTX were revealed Referred to referred to Bankman-Fried as a “swindler,” saying that Binance exited its FTX position in July 2021 after becoming “increasingly uncomfortable with Alameda/SBF.” SBF was “undying” when the exchange pulled out, according to the Binance CEO.

In response, the SBF alleged that Binance “threatened to walk in at the last minute,” accusing CZ of lying about his role in the transaction.

On November 11, FTX Group and nearly 130 companies — including FTX Trading and FTX US, under West Realm Shares Services and Alameda Research — He filed for bankruptcy in the United States Quoting the “liquidity crisis”.

Since FTX’s bankruptcy, SBF has been named to seven class-action lawsuits and numerous investigations and investigations, incl An investigation of market manipulation by federal prosecutors.