Bankman-Fried Continues to Blame Binance for the Collapse of His Crypto Empire
cryptonews.comFormer FTX CEO Sam Bankman-Fried has released an extensive Substack article talking about how his crypto empire collapsed, once again putting the blame on rival crypto exchange Binance.
On Thursday, Bankman-Fried published a Substack article titled "FTX Pre-Mortem Overview," where he extensively talked about his group of crypto-related companies and how they failed. Among other things, the disgraced crypto boss continued to argue that Binance had a big role in the collapse of his businesses.
"In November 2022, an extreme, quick, targeted crash precipitated by the CEO of Binance made Alameda insolvent," SBF said, adding that the contagion from Alameda then spread to FTX and other companies.
SBF also claimed that Binance CEO Changpeng Zhao (CZ) had run an “extremely effective months-long PR campaign against FTX” leading up to the fateful few days in November which culminated in the exchange’s bankruptcy.
SBF's claims come despite the fact that the new FTX management has accused him of mishandling customer funds. On Wednesday, FTX attorney Andrew G. Dietderich said in federal court in Wilmington, Delaware that Alameda spent a lot of money on hotels and parties.
“It [Alameda] bought planes, houses, threw parties, made political donations. It made personal loans to its founders. It sponsored the FTX Arena in Miami, a Formula 1 team, the League of Legends, Coachella and many other businesses, events and personalities.”
John Ray III, the new CEO of FTX, has accused SBF and other FTX executives of incompetence, inexperience, and haphazard bookkeeping. He said in mid-December that FTX collapsed because of the "concentration of control in the hands of a very small group of grossly inexperienced and unsophisticated individuals"
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