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FTX’s Sam Bankman-Fried is ‘one of the greatest fraudsters in history’ and a ‘master manipulator,’

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FTX’s Sam Bankman-Fried is ‘one of the greatest fraudsters in history’ and a ‘master manipulator,’ Binance CEO says

Binance CEO Changpeng Zhao, commonly known as “CZ”, spoke out against disgraced FTX founder Sam Bankman-Fried and his once-$32 billion crypto empire.

CZ, who cofounded Binance, the largest cryptocurrency exchange in the world by trading volume, took to Twitter to address a series of “wrong narratives” surrounding FTX’s swift collapse on Tuesday.

Before FTX faced a severe liquidity crisis and later filed for Chapter 11 bankruptcy protection, Bankman-Fried was seen by many as an industry wunderkind, whose firms notched ad campaigns with A-list celebrities like Tom Brady and secured backing from investing giants like BlackRock and Sequoia Capital.

“SBF perpetuated a narrative painting me and other people as the “bad guys”. It was critical in maintaining the fantasy that he was a “hero,”” the Binance exec tweeted. “SBF is one of the greatest fraudsters in history, he is also a master manipulator when it comes to media and key opinion leaders.”

In early November, Binance liquidated its holdings of FTX’s FTT token after a bombshell Coindesk report revealed that FTT was used to prop up the balance sheet of Bankman-Fried’s trading shop Alameda Research.

Observers have pointed to CZ’s tweet announcing that Binance is dumping its FTT position as a way of sabotaging its rival. Bankman-Fried’s FTX would soon become insolvent, but the Binance exec says “no healthy business can be destroyed by a tweet.”

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Alameda Research CEO Caroline Ellison gave away the token’s floor in a November 6 tweet that offered to buy Binance’s FTT holdings, CZ says, citing a Bloomberg report.

As for claims that FTX was sabotaged by a third party, CZ said the exchange “killed themselves (and their users) because they stole billions of dollars of user funds. Period.”

Bankman-Fried chalks up FTX’s collapse to accounting errors and maintains he never intentionally misused funds or defrauded anyone.

“I didn’t ever try to commit fraud,” Bankman-Fried said at the New York Times DealBook Summit on November 30. “I was excited about the prospects of FTX a month ago. I saw it as a thriving, growing business. I was shocked by what happened this month. And reconstructing it, there are things that I wish I had done differently.”

Bankman-Fried did not immediately return Insider’s request for comment.

Source: Businessinsider.com

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