FTX’s Secrets Exposed: Here’s How Sam Bankman-Fried Tried to Take Down Binance

In the recent courtroom battle where the US Securities and Exchange Commission (SEC) confronted Sam Bankman-Fried, the surprising testimonies of Caroline Ellison and Gary Wang have rattled the cryptocurrency community.

During the trial, evidence emerged suggesting that FTX actively tried to influence regulators to increase scrutiny on its primary competitor, Binance. The complicated history and rivalry between these two cryptocurrency giants add significance to this strategic move.

The ‘To-Do List’ Evidence

A crucial piece of evidence was a ‘to-do list’ created by Caroline Ellison during her time as CEO of Alameda Research. Notably, this list explicitly mentioned the intention to subject Binance to stricter regulatory oversight.

Also Read: Binance UK Hit With Fresh Regulations By FCA; What Next?

The trial concluded with the revelation that FTX knowingly attempted to direct regulators’ attention towards Binance during a turbulent period in its history. It is widely known that Binance had almost acquired FTX.

FTX Crash and Burned

However, Binance’s decision to sell a significant portion of FTT, the native token of FTX, led to a loss of trust in the market. Furthermore, Binance ultimately backed out of its plan to acquire the now-insolvent FTX. This series of events provides a nuanced view of the intricate relationship between these two cryptocurrency giants.

Remarkably, this potential acquisition set off a chain of events that ultimately resulted in FTX’s downfall.

Exposing the Wrongdoers

During her testimony, Ellison revealed a web of deception and manipulation used by the accused to mislead investors and lenders. She admitted to creating seven different balance sheets and shared that Bankman-Fried had authorized the creation of “alternative” balance sheets to deceive lenders about the use of funds from the FTX Derivatives Exchange.

According to recent rumors, Binance’s $1 billion donation to the crypto recovery effort may not be fully used. In addition, compliance-related problems are spreading throughout the globe.

Industry Impact

The impact of this trial extends beyond FTX and Binance. The entire digital asset industry has been shaken by these unfolding revelations. Regulatory bodies are increasing their oversight of Binance, marking a notable shift from their previous, less intrusive approach.