Before Bankruptcy, Crypto Execs Told FTX Co-Founder SBF to Back Off Stablecoins – Bitcoin News


According to a report by the Wall Street Journal (WSJ), cryptocurrency executives were reportedly worried about the safety of their investors. Sam Bankman Fried’s (SBF)’s Alameda Research was allegedly trying to “depeg stablecoins.” According to the paper, top executives at crypto exchanges are members of a Signal Chat group called “Exchange Coordination” and Binance CEO Changpeng Zhao (CZ) reportedly informed SBF that he should stop causing “any more damage.”

Binance CEO CZ Told SBF to Desist from Deleting Stablecoins

The Wall Street Journal (WSJ) reports that, shortly before cryptocurrency exchange FTX filed bankruptcy, there was a conversation between CZ and SBF on November 10, 2022 in a Signal Chat group called “Exchange Coordination.” It is believed that members of this group include crypto leaders such as Tether CTO Paolo Ardoino, Kraken co-founder Jesse Powell, and others.

The WSJ Report further explains how SBF was accused of attempting to destabilize stabilizecoins like Tether (USDT). “A Tether official and the head of the world’s largest crypto exchange became alarmed that Sam Bankman-Fried was trying to destabilize the stablecoin,” wrote WSJ reporters Patricia Kowsmann, Alexander Osipovich, and Caitlin Ostroff. Bankman-Fried, however, denied the claims in the report concerning the Signal Chat conversation in a statement to WSJ.

Kowsmann, Osipovich, and Ostroff detail that Binance CEO Changpeng Zhao confronted SBF about the alleged delisting efforts. “Stop trying to remove stablecoins,” CZ is quoted as saying. “And Stop doing anything. Stop now, do no more harm.”

FTX Co-founder Sam Bankman-Fried was recently willing to testify before the US Congress and also discussed the idea of ​​launching a new FTT token with cryptocurrency advocate Ran Neuner on December 9. Furthermore, this weekend’s revelations suggest that The Block CEO Michael McCaffrey secretly received over $43 Million from SBF’s Alameda Research. Last year, it was also revealed that Shark Tank Star Kevin O’Leary was paid $15 Million to be a spokesperson at FTX.

This story has tags

Alameda Research, Binance CEO, Changpeng Zhao, CZ, depeg, Depeg stablecoin, exchange coordination, exchange executives, Jesse Powell, Kraken, Paolo Ardoino, Sam Bankman-Fried, sbf, Signal Chat group, Stablecoins, Tether, Tether (USDT), USDT, Wall Street DailyWSJ

What are your thoughts on the alleged conversation between CZ and SBF just before the collapse in FTX? Please let us know your opinion in the comments section below.

jamie redmann

Jamie Redman is a fintech journalist based in Florida. Since 2011, he has been an active participant in the cryptocurrency community. He is passionate about Bitcoin, Open Source Code, Decentralized Applications, and Open Source Code. Redman has written over 6,000 articles for News since September 2015. Today, he covers disruptive protocols.


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