🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

Binance implicated in crypto empire fall, ex-FTX chief faces charges

EditorAmbhini Aishwarya
Published 2023-10-12, 08:20 a/m
FTT/USD
-
FTM/USD
-

In the latest development of a high-profile cryptocurrency case, Sam Bankman-Fried, former FTX Chief, is facing seven fraud charges and another trial scheduled for March 2024. The allegations stem from a leaked memo dated November 6, 2022, in which Bankman-Fried implicated Binance in the downfall of his cryptocurrency empire.

The memo revealed Alameda Research's balance sheet to CoinDesk, according to Caroline Ellison's testimony. It identified potential bailout prospects such as Justin Sun, the founder of TRON and an advisor at Huobi, who is known to be close to CZ. At the time, FTX held $12 billion in client assets but had only a third available for withdrawals.

The situation was further exacerbated by Binance's sale of $500 million worth of FTT after the leak. Binance, one of the largest cryptocurrency exchanges globally, has yet to respond to requests for comments. However, it had previously issued a public warning to its customers about FTX.

Bankman-Fried is preparing for his defense and plans a "confident tweet thread". The defense team is set to cross-examine Ellison in the upcoming proceedings. The case continues to unfold as the crypto industry keenly watches its outcome.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.