The ongoing trial of Sam Bankman-Fried (SBF), the founder of FTX, has been nothing short of sensational. The global audience is abuzz with the revelations. The trial, set to continue into the next month, has seen Caroline Ellison, SBF‘s former romantic and business associate, emerge as a pivotal witness. Her disclosures have painted a picture of FTX‘s operations that increasingly seem to have been rooted in criminal intent from the outset.
The FTX Smear Campaign Against Binance
One of the most startling aspects of the trial has been the suggestion that Bankman-Fried might have manipulated US regulatory bodies, the SEC and CFTC, to target Binance, a competitor. Ellison’s testimony has hinted at SBF‘s attempts to position FTX as a transparent and compliant alternative to Binance. Allegedly, he leveraged his political contributions to foster a favorable sentiment towards FTX while casting Binance in a negative light. Ellison’s statements during the trial have lent credence to these speculations.
A particularly intriguing detail from Ellison’s testimony, which other sensational revelations have somewhat overshadowed, revolves around SBF‘s perception of financial regulators. Instead of seeing them as unbiased overseers, he seemingly viewed them as potential allies in his quest to expand his business empire. Ellison quoted SBF‘s ambitions of leveraging US regulators to suppress Binance, thereby boosting FTX‘s market share.
SBF‘s strategy reportedly involved a covert campaign emphasizing Binance CEO Changpeng Zhao‘s purported connections to China. This is despite the fact that CZ, a Canadian national, had distanced his company from China years prior. This campaign seemed to be gaining momentum, with indications that new crypto regulations favoring FTX were on the horizon.
The Devastating Echo
However, the irony of this situation is palpable. While FTX was allegedly targeting Binance, Ellison’s account suggests that FTX was involved in questionable activities in China, including using the crypto accounts of Thai sex workers to access frozen funds and purportedly bribing Chinese officials to the tune of $150 million.
However, this whisper campaign resulted in devasting consequences. When CZ discovered the covert campaign, he decided to divest from FTX‘s token, FTT, potentially hastening the downfall of both FTX and its founder.