FTX's Strategy Against Binance Unveiled in Ellison's To-Do List – Coinpedia Fintech News
In the recent trial procedure of the US SEC vs. Sam Bankman-Fried, the testimony of prosecuting witnesses Caroline Ellison and Gary Wang shocked the whole crypto community.
Evidence presented throughout the trials suggested that FTX actively lobbied regulators to increase oversight of its main rival, Binance. The history and rivalry between the two titans make this maneuver extra noteworthy.
Crucial Evidence – a ‘To-Do List’
A crucial piece of evidence that stood distinctly in the recent trial was a ‘to-do list’ created by the PW Caroline Ellison, during her tenure as the CEO of Alameda Research. What is to be noted in the ‘to-do list’ is mentioning the desire to subject Binance to more stringent regulatory oversight.
What came to be the conclusion in this trial, was the fact that FTX consciously attempted to point regulators toward Binance during its turbulent phase.
The Feud between Binance and FTX
It is well known that Binance had almost signed a deal to buy FTX.
The decision by Binance to sell a sizable portion of FTT, the native token of FTX, sparked a crisis in market trust. Additionally, they later pulled out of the purchase of the now-bankrupt FTX. This series of actions adds depth to the background of the ongoing trial by painting a nuanced picture of the relationship between the two conversations.
Read: New Lawsuit Accuses Binance Exchange of Manipulating FTX’s Demise
However, this possible acquisition sparked a chain of circumstances that ultimately brought about FTX’s demise.
Revelation of Fraud Balance Sheets
During her testimony, Ellison also uncovered the truth of how the culprits had manipulated and scammed investors and lenders.
She acknowledged generating seven different balance sheets. She revealed that Bankman-Fried gave her the go-ahead to create “alternative” balance sheets to deceive lenders about how the money from the FTX Derivatives Exchange was used.
According to recent rumors, Binance’s $1 billion donation to the crypto recovery effort may not be fully used. In addition, compliance-related problems are spreading throughout the globe.
In the End …
The trial’s ramifications extend beyond FTX and Binance. The whole digital asset business has been alerted by these developing developments. Regulatory organizations have increased their surveillance of Binance while previously keeping a close eye on it.
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