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<p>The post <a rel="nofollow" href="https://coinpedia.org/news/caroline-ellison-spotlights-changpeng-zhaos-tweet-as-a-potential-factor-in-ftxs-downfall/">Caroline Ellison Spotlights Changpeng Zhao’s Tweet as a Potential Factor in FTX’s Downfall</a> appeared first on <a rel="nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>We have constantly updated you on the biggest scandal ever in crypto history. Since Sam Bankman-Fried has pleaded not guilty, every twist and turn carries weight. According to Caroline Ellison, former CEO of Alameda Research, a tweet by Binance CEO Changpeng Zhao, also known as CZ, played a role in the collapse of the crypto exchange FTX.</p> 
<p>So far, the court has analyzed the Binance Balance sheet leak angle. The tweet controversy also enrages crypto fans on Binance’s nasty role in the FTX collapse. Here’s the story.&nbsp;</p> 
<h2 class="wp-block-heading" id="h-day-7-post-partum-of-controversial-tweet-ellison-s-testimony-decodes-more-facts"><strong>Day 7: Post-Partum of Controversial Tweet, Ellison’s Testimony Decodes More Facts</strong></h2> 
<p>This courtroom drama, now in its seventh day, has been marked by Ellison’s pivotal testimony. She was among the first insiders of FTX and Alameda to plead guilty, part of a cooperation agreement with U.S. authorities. Bankman-Fried, on the other hand, maintains his plea of not guilty, facing seven charges in his current trial, with an additional five counts slated for a separate trial in March 2024. This is just the beginning. The star-studded case has deeper connections.</p> 
<p>In the now-infamous tweet from Nov. 6, 2022, CZ announced Binance’s intention to liquidate its FTX Token (FTT) holdings due to recent revelations. This move triggered a domino effect, with retail investors following suit and withdrawing their funds from FTX. The push led FTX to halt withdrawals and eventually declare bankruptcy. While Ellison played a victim card on the tweet’s impact, she emphasized that the primary reason for FTX’s collapse was Alameda’s borrowing of $10 billion from the exchange that it couldn’t repay.</p> 
<h2 class="wp-block-heading" id="strong-cz-rebuffed-all-the-claims-strong"><strong>CZ Rebuffed All the Claims</strong></h2> 
<p>During the trial, CZ countered claims that his tweet singlehandedly “destroyed FTX,” asserting that a robust business couldn’t be dismantled by a tweet alone. He pointed to Ellison’s own social media activity on Nov. 6, suggesting that Alameda’s offer to buy Binance’s FTT holdings was the true catalyst for the token sell-off.&nbsp;</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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   <p lang="en" dir="ltr">3 “SBF had good intentions, but just made some mistakes.” <br><br>Lying is never with good intentions.</p>— CZ 
   <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f536.png" alt="🔶" class="wp-smiley" style="height: 1em; max-height: 1em;"> Binance (@cz_binance) <a href="https://twitter.com/cz_binance/status/1600083618101018624?ref_src=twsrc%5Etfw">December 6, 2022</a>
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<h3 class="wp-block-heading" id="strong-while-eliison-opened-some-more-twists-strong"><strong>While Eliison Opened Some More Twists</strong></h3> 
<p>Ellison’s testimony delved into several revelations, from Bankman-Fried’s presidential aspirations to his pursuit of Saudi Crown Prince Mohammed bin Salman as a potential backer. Her cross-examination by the defense focused on Bankman-Fried’s knowledge of Alameda’s operations.</p> 
<p>When pressed by the defense, Ellison admitted that Bankman-Fried might not have been aware of the risks posed to FTX customers’ funds, a statement deemed “vague” by Assistant U.S. Attorney Danielle Sassoon.</p>

Caroline Ellison Spotlights Changpeng Zhao’s Tweet as a Potential Factor in FTX’s Downfall

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