According to former Alameda Research CEO Caroline Ellison, a tweet from Binance CEO Changpeng Zhao (CZ) played a role in the collapse of cryptocurrency exchange FTX. In the tweet, CZ announced that Binance would be liquidating its holdings of FTX Token (FTT) due to recent revelations. This caused retail investors to follow suit and withdraw funds from FTX, leading to the platform halting withdrawals and filing for bankruptcy. Ellison also mentioned that Alameda borrowing $10 billion from FTX without repayment contributed to the collapse. CZ defended himself, stating that no healthy business can be destroyed by a tweet and pointing to Ellison’s own social media activity as the cause for people dumping FTT. Ellison’s testimony in Sam Bankman-Fried’s trial also revealed Bankman-Fried’s ambition to become the President of the United States and his potential interest in Saudi Crown Prince Mohammed bin Salman as a backer. Bankman-Fried has pleaded not guilty to criminal charges and Ellison was one of the first insiders to plead guilty in exchange for her testimony.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Middle East |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Mark Cohen, Changpeng Zhao, Danielle Sassoon, Caroline Ellison, Sam Bankman-Fried |
| Companies | FTX, Binance, Genesis, Alameda Research, Saudi Crown Prince Mohammed bin Salman |
| Currencies | FTX |
| Securities | None |
