Fun

Report: Before the Bankruptcy Filing, FTX Co-Founder SBF Was Told by Crypto Execs to ‘Stop Trying to Depeg Stablecoins’

News Feed - 2022-12-12 03:12:37

Report: Before the Bankruptcy Filing, FTX Co-Founder SBF Was Told by Crypto Execs to ‘Stop Trying to Depeg Stablecoins’


According to a recent report published by the Wall Street Journal (WSJ), cryptocurrency executives were allegedly concerned that Sam Bankman Fried’s (SBF) Alameda Research was trying to “depeg stablecoins.” Purportedly, high-up executives from crypto exchanges are members of a Signal chat group called “Exchange coordination,” and Binance CEO Changpeng Zhao (CZ) ostensibly told SBF to stop causing “more damage.” Binance CEO Allegedly Told SBF to Stop Causing ‘More Damage’ and to ‘Stop Trying to Depeg Stablecoins’


The Wall Street Journal (WSJ) reports that just before the crypto exchange FTX filed for bankruptcy, there was a conversation between CZ and SBF on Nov. 10, 2022, in a Signal chat group called “Exchange coordination.” The Signal group’s chat logs were apparently seen by the WSJ and high up crypto execs like Tether’s CTO Paolo Ardoino and Kraken co-founder Jesse Powell are purportedly members of the group.


The WSJ report details that SBF was accused of trying to destabalize stablecoins and more specifically tether (USDT). “A Tether official and the head of the world’s largest crypto exchange grew alarmed that Sam Bankman-Fried was trying to destabilize the stablecoin,” the WSJ reporters Patricia Kowsmann, Alexander Osipovich and Caitlin Ostroff allege. However, in a statement made to the WSJ, SBF denied the claims made in the report about the Signal chat conversation.


Kowsmann, Osipovich and Ostroff detail that Binance’s CEO Changpeng Zhao confronted SBF about the alleged depegging attempts. “Stop trying to depeg stablecoins,” CZ is cited as saying. “And stop doing anything. Stop now, don’t cause more damage.”


FTX co-founder Sam Bankman-Fried has recently agreed to testify in front of U.S. Congress and he also discussed the idea of launching a new FTT token with crypto proponent Ran Neuner on Dec. 9. Additionally, revelations released this weekend indicate that The Block CEO Michael McCaffrey was secretly given more than $43 million from SBF’s Alameda Research. Shark Tank star Kevin O’Leary also revealed this past Thursday that he was paid $15 million to be a spokesperson for FTX. Tags in this story Alameda Research, Binance CEO, Changpeng Zhao, CZ, depeg, Depeg stablecoin, Exchange coordination, Exchange Execs, Jesse Powell, Kraken, Paolo Ardoino, Sam Bankman-Fried, sbf, Signal Chat group, Stablecoins, Tether, Tether (USDT), USDT, Wall Street Journal, WSJ


What do you think about the alleged discussion between CZ and SBF a day before FTX collapsed? Let us know what you think about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. New York Times, FT, Bloomberg Blasted for Attempting to Get FTX Creditors" Names Unsealed NEWS | 8 hours ago Another Member of Russian Crypto Pyramid Finiko Arrested in UAE NEWS | 13 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleNew York Times, FT, Bloomberg Blasted for Attempting to Get FTX Creditors’ Names Unsealed Next articleHacker Steals $6.9 Million From Arbitrum-Based Defi Protocol Lodestar Finance Show comments More Popular NewsIn Case You Missed ItTony Hawk"s Latest NFTs to Come With Signed Physical Skateboards


Last December, the renowned professional skateboarder Tony Hawk released his “Last Trick” non-fungible token (NFT) collection via the NFT marketplace Autograph. Next week, Hawk will be auctioning the skateboards he used during his last tricks, and each of the NFTs ... read more.UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin

News Feed

Brayden Lindrea5 hours agoCoinShares gets buying rights to Valkyrie’s crypto ETF unitThe deal comes as Bitcoin ETF applications in the U.S. are seemingly inching closer toward regulatory approval.1339 Total views33 Tot
Bitcoin price loses steam, but futures markets forecast upside above $70K
Marcel Pechman3 hours agoBitcoin price loses steam, but futures markets forecast upside above $70KBitcoin futures and options indicators remain stable even after BTC price swiftly rejected off the $63,500 level.4211 Tota
ECB Calls for Urgent Regulation of Stablecoins and Defi, Won’t Rule Out Bitcoin Mining Ban
ECB Calls for Urgent Regulation of Stablecoins and Defi, Won’t Rule Out Bitcoin Mining Ban A new report by the European Central Bank (ECB), presented as a “deep dive into
Radioshack Goes Defi in Its Latest Iteration
Radioshack Goes Defi in Its Latest Iteration Radioshack, the electronics-associated brand, has announced it will now pivot to a cryptocurrency-centric model. The company informed t
Bybit introduces Indian digital rupee CBDC payment option
Derek Andersen5 hours agoBybit introduces Indian digital rupee CBDC payment optionThe use of the CBDC on the cryptocurrency exchange will enhance security and, it hopes, attract merchants.449 Total views15 Total sharesLi
XRP Mania On The Rise: ATH Predictions Backed By Solid Google Search Interest
Este artículo también está disponible en español. Recently, XRP has gained immense attention in the cryptocurrency world. Its price recently touched new highs and attract
‘SEC Will Stop at Nothing to Control Entire Crypto Space,’ Says Former Federal Prosecutor
"SEC Will Stop at Nothing to Control Entire Crypto Space," Says Former Federal Prosecutor A former federal prosecutor says that the U.S. Securities and Exchange Commission (SEC) &#
It won’t be long before crypto plays a role in daily payments beyond Lugano
Gracy Chen3 hours agoIt won’t be long before crypto plays a role in daily payments beyond LuganoThe Swiss city of Lugano is allowing its residents and visitors to use cryptocurrency for everyday transactions — includ
Turner Wright6 hours agoUS DoJ is concerned about a run on Binance should prosecutors bring fraud charges: ReportOfficials reportedly speculated an indictment against Binance in the U.S. could cause a run on the exchange
Bitcoin Options Market Signals Further Upside Potential For BTC Price: New ATH Soon?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Failed House candidate and partner of ex-FTX exec starts crypto think tank
Turner Wright7 hours agoFailed House candidate and partner of ex-FTX exec starts crypto think tankContributions to Michelle Bond’s 2022 congressional campaign were part of a criminal investigation into her partner, Rya
Bankrupt Crypto Lender Celsius Seeks to Reopen Withdrawals for Specific Customers
Bankrupt Crypto Lender Celsius Seeks to Reopen Withdrawals for Specific Customers Celsius Network Ltd., the crypto lender that filed for Chapter 11 bankruptcy protection on July 13