CZ accused SBF of trying to depeg USDT through Alameda CZ accused SBF of trying to depeg USDT through Alameda
In text messages obtained by the NYT, CZ said that SBF was using Alameda to place trades designed to destabilize Tethter (USDT).
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Updated: Aug. 24, 2023 at 6:18 pm UTC
Web Summit / CC BY 2.0 / Flickr. Remixed by CryptoSlate
The drama surrounding FTX and Binance continues to unfold as new text messages emerge that show what went on behind the scenes as the exchange crumbled.
The New York Times obtained text messages from a group chat with Sam Bankman-Fried, Changpeng Zhao, and various other cryptocurrency executives that were exchanged on Nov. 10 — the day before FTX filed for bankruptcy.
The series of around a dozen texts showed that all of the crypto executives feared that the situation could worsen. The worried exchanges reportedly became increasingly tense as CZ accused SBF of trying to manipulate the price of Tether (USDT).
In the texts, CZ said that SBF used Alameda Research to depeg the stablecoin. Binance’s CEO pointed out a $250,000 trade and said Alameda specifically placed it to destabilize USDT.
According to the New York Times, SBF dismissed the accusations.
“Are you claiming that you think that $250k of USDT trading would depeg it?”
CZ responded that a trade of that size wouldn’t be able to destroy Tether but could still cause problems.
“My honest advice: stop doing everything. Put on a suit, and go back to DC, and start to answer questions.”
Other executives in the group chat reportedly shared the concern, with messages showing all of them were aware that any fluctuations in a single cryptocurrency could destabilize the whole industry.
Binance declined to comment on the matter. A spokesperson for Tether said that the company demonstrated resilience to attacks and that FTX’s actions “don’t reflect the ethos and commitment of an entire industry.”
SBF issued a statement calling CZ’s claims “absurd.”
“Trades of that size would not make a material impact on Tether’s pricing, and to my knowledge, neither myself nor Alameda has ever attempted to intentionally depeg Tether or any other stablecoins. I have made a number of mistakes over the past year but this is not one of them.”
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Andjela Radmilac
Armed with a classical education and an eye for news, Andjela dove head deep into the crypto industry in 2018 after spending years covering politics.
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FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Alameda Research
Alameda Research was once a principal trading firm, operating as an arm of the failed crypto exchange, FTX.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.