Leaked Private Chat Reveals Troubles Causing FTX’s Downfall

MARKET_WATCH Crypto

The cryptocurrency community was left in shock by the unexpected downfall of FTX, a once-prominent exchange. Recent leaks, however, shed light on internal conversations that likely played a pivotal role in the company’s unraveling. 

 

Ellison and SBF’s Leaked Chat Reveal Corruption


A leaked chat conversation between Caroline Ellison and Sam Bankman-Fried provides a rare glimpse into the mindset and strategies employed by the central figures in this scandal.


In this conversation, Ellison proposed tweeting an offer to CZ, Binance’s CEO, with the intention of buying all of Binance’s FTT for $22 per token. This move was apparently aimed at countering the negative PR surrounding their companies. 


What’s intriguing is that SBF’s response not only supported this idea but also implied a belief that such a tweet could elicit a positive market response. This exchange, while seemingly casual, reveals a somewhat cavalier attitude, seemingly unconcerned about the enormity of the situation and the billions hanging in the balance.

 

FTX’s Attempt at Manipulation Revealed


Digging deeper into the conversation, Ellison’s mention of intending to tweet that “FTT will go up” becomes significant. It seems to be a maneuver to influence market sentiment surrounding FTT, FTX’s native token, precisely at a time when it was grappling with significant price drops.

 

SBF’s subsequent messages hint at FTX’s liquidity challenges, underscoring the urgency of freeing up capital due to substantial withdrawals. This revelation is especially alarming when placed against the backdrop of FTX’s deteriorating financial health.

 

On the Flipside


FTX was not the only cryptocurrency exchange facing liquidity challenges, and the pressure to free up capital due to substantial withdrawals was a shared concern in the industry during that time.


FTX’s efforts to free up capital could be seen as a pragmatic response to a dire situation, intended to protect both the exchange and its users.


Why This Matters


This leaked chat conversation between key players at FTX and Alameda Research exposes a potentially deliberate attempt to manipulate market sentiment during a financial crisis. Such actions not only raise concerns about the integrity of the crypto industry but also underscore the need for increased transparency and oversight to safeguard the interests of all stakeholders.

 

Source : DailyCoin by Kyle Calvert / October 22, 2023

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