Former FTX CEO Sam Bankman-Fried has denied many of the allegations leveled against him since his resignation, but clarified today that he was not targeting Terra or Tether stablecoins.
“I made a lot of big mistakes this year. This wasn’t one of them,” Bankman-Fried wrote on Twitter early Friday morning. There is no evidence, because it did not happen. Please focus on your home.”
This was in response to a tweet from Su Zhu, co-founder of defunct cryptocurrency hedge fund Three Arrows Capital, who said he was asked why he and co-founder of TerraForm Labs Do Kwon have since become so outspoken. FTX breakdown in early November.
The company first stumbled when it was revealed that its sister company, Alameda Research, was counting billions in illiquid FTX tokens (FTT) on its balance sheet. There was a final moment when Binance considered acquiring the cryptocurrency exchange, but then backtracked and said FTX beyond its ability to help.FTX filed for bankruptcy two days later.
Now, former rivals, such as Three Arrows Capital (aka 3AC), are beginning to implicate the FTX founder for their own shortcomings.
“I firmly said we’ve been hunted since I was me July bloomberg an interview. Zhu wrote, go back and read it. Simply the truth, but one so uncomfortable that my advisors at the time didn’t want me to say it [because] It can be “bad optics” and it can be seen as “aberration”.
He has consistently said that he believes other major players in the cryptocurrency markets have been “chasing” or trying to force the liquidation of the company’s TerraUSD position. The algorithmic stablecoin, trading as UST, lost its peg to the US dollar in May, wiping out $40 billion in value when it went to zero.
Chu did not say in July that he believed Bankman-Fried was responsible for Terra’s collapse, which led to 3AC You lose $200 million in UST, but he’s said that several times since FTX filed for bankruptcy.
Zhu isn’t the only one who thinks there’s reason to believe Bankman-Fried may have manipulated the markets.
The disgraced FTX CEO is being investigated by federal prosecutors to assess the possibility that Bankman-Fried sought to destabilize Kwon TerraUSD (UST) and Luna, the network’s board token, for personal gain, two people familiar with the matter said. New York times.
Bankman-Fried’s denial reflects what he said New York times On allegations by Binance CEO Changpeng Zhao that he tried to manipulate the markets to force Tether, the largest stablecoin by market capitalization, to lose its currency peg to the US dollar.
Zhao shared a series of messages with the new From a group conversation on Signal that included Bankman-Fried on November 10, the day before FTX filed for bankruptcy. At the time, Binance had just retracted its non-committal announcement of acquiring FTX if the company’s books of books were approved by its due diligence team.
In the texts, Zhao accused Bankman-Fried of trying to manipulate the price of the Tether stablecoin, which bears the same name as its issuer.
Tether is the most important stablecoin in the cryptocurrency market, and arguably its most important asset overall, reaching $30 billion in volume in the last 24 hours — that’s almost more than Bitcoin and Ethereum combined, according to CoinGecko. But the stablecoin and its issuer are not without their own controversy.
Since last year, the company has been running a campaign for Eliminate corporate certifications, or corporate bonds, from its treasury since it came under fire for it last year. In September 2021, Chinese real estate developer Evergrande was at risk of defaulting on $300 billion in debt. This raised concerns about the companies’ securities, which at the time made up 50% of Tether’s reserves. The company later said none of its commercial papers were related to Evergrande’s debts and has now canceled them entirely.
According to Zhao, the persistent suspicions surrounding Tether – whether it is true or not – could have made it a target for Bankman Fried to manipulate.
“Trades of this magnitude would not have a material impact on Tether prices, and to the best of my knowledge neither Alameda nor I have ever attempted to crash Tether or any other stablecoin,” Bankman-Fried said, according to The New York Times. “I’ve made a number of mistakes over the past year but this isn’t one of them.”
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