- Recent statements made during Sam Bankman-Fried’s high-profile lawsuit have rocked the crypto industry.
- The jury saw particularly noteworthy evidence: a to-do list written by Caroline Ellison, the CEO of Alameda Research.
- Revealing that Binance was the target, along with Ellison’s courtroom appearance, has sparked further debate.
Caroline Ellison’s testimony in Sam Bankman-Fried’s lawsuit reveals surprising plans: Binance was the target!
What Were FTX’s Plans Regarding Binance?
Recent statements arising from Sam Bankman-Fried’s high-profile lawsuit have sent shockwaves through the crypto industry. The evidence presented in the case shows that FTX actively sought regulators to intensify their scrutiny of their main rival, Binance. This maneuver is particularly intriguing due to the intertwined history and competition between these two giants.
The jury saw particularly noteworthy evidence: a to-do list written by Caroline Ellison, the CEO of Alameda Research, who also had a romantic relationship with Bankman-Fried. The list notably emphasized the intention to subject Binance to increased regulatory oversight. Therefore, the narrative surrounding the lawsuit suggests that FTX deliberately directed regulators toward Binance during certain periods.
It is well-documented that Binance was almost in negotiations to acquire FTX. However, this potential acquisition accelerated the chain of events that led to FTX’s downfall. Binance’s decision to sell a significant amount of FTX’s native token, FTT, led to a crisis of market confidence.
Moreover, they later withdrew from the acquisition of the subsequently insolvent FTX. This chain of events complicates the relationship between the two exchanges and adds layers to the context of the ongoing lawsuit.
The Revelation by Ellison and the FTX Scandal Expands
In addition to the revelation that Binance was the target, Ellison’s courtroom appearance has sparked further debate. She confirmed generating seven different balance sheets. She shared that Bankman-Fried instructed her to prepare “alternative” balance sheets to deceive lenders regarding the use of funds coming from FTX Derivatives Exchange.
The lawsuit and its consequences extend beyond FTX and Binance. Indeed, these events serve as a warning to the entire digital asset industry. Regulators already closely monitoring Binance have stepped up their oversight. Recent reports suggest that Binance’s promised $1 billion crypto rescue fund may not be fully deployable. Furthermore, compliance issues are emerging from various corners around the world.
