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Recent revelations from the high-profile trial of FTX’s Sam Bankman-Fried have shaken the crypto industry. During the proceedings, evidence indicated that FTX had actively sought regulators to intensify scrutiny on its key competitor, Binance. This maneuver stands out particularly because of the intertwined history and competition between the two giants.
FTX Trial Exposes Binance Regulatory Plot
The jurors saw a particularly telling piece of evidence: a to-do list that Alameda Research’s CEO, Caroline Ellison, authored. She was also romantically involved with Bankman-Fried. The list notably highlighted an ambition to bring Binance under increased regulatory scrutiny. Consequently, the narrative around this trial suggests that FTX intentionally tried to direct regulators toward Binance during its tumultuous period.
It’s well-documented that Binance nearly sealed a deal to acquire FTX. However, this potential acquisition catalyzed a series of events leading to FTX’s downfall. Binance’s decision to sell a significant amount of FTX’s native token, FTT, precipitated a market confidence crisis. Moreover, they later withdrew from the acquisition of the now-bankrupt FTX. This sequence of events paints a complex picture of the relationship between the two exchanges, adding layers to the ongoing trial’s context.
FTX Scandal Widens with Ellison’s Revelations
Besides the revelation about targeting Binance, Ellison’s courtroom appearance unearthed more controversies. She confirmed producing seven varying balance sheets. She shared that Bankman-Fried directed her to draft “alternative” balance sheets to mislead lenders about the utilization of funds from FTX Derivatives Exchange.
The trial and its implications go beyond just FTX and Binance. Indeed, these unfolding events have put the entire digital asset industry on notice. Regulatory bodies, already keen observers of Binance, have ramped up their surveillance. Recent reports indicate that Binance’s pledged $1 billion for crypto recovery might not be fully utilized. Additionally, issues related to compliance are emerging from different corners of the world.
Read Also: The Bahamas Maintains Optimistic Outlook on Crypto Amid FTX Debacle
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