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Changpeng Zhao’s Tweet 'Contributed' to Collapse of FTX: Caroline Ellison
Summary: During Sam "SBF" Bankman-Fried's criminal trial on October 12th, former CEO of Alameda Research Caroline Ellison stated that a single tweet by Binance CEO Changpeng "CZ" Zhao played a significant role in the downfall of the cryptocurrency exchange FTX. In this now-infamous tweet posted on X (formerly Twitter) on November 6, 2022, CZ announced that ...
During Sam "SBF" Bankman-Fried's criminal trial on October 12th, former CEO of Alameda Research Caroline Ellison stated that a single tweet by Binance CEO Changpeng "CZ" Zhao played a significant role in the downfall of the cryptocurrency exchange FTX.
In this now-infamous tweet posted on X (formerly Twitter) on November 6, 2022, CZ announced that Binance would liquidate its holdings of FTX Token (FTT) "due to recent revelations that had come to light."
Numerous reports suggest that this token liquidation prompted retail investors to mimic Binance's actions and withdraw their funds from FTX. This mass exodus from the platform ultimately forced FTX to suspend withdrawals and declare bankruptcy on November 11.
Ellison initially took the witness stand during SBF's trial on October 10, revealing that Bankman-Fried had instructed her to transfer billions of dollars from FTX without the consent of its users.
Author: Katie Lin
Tags: Alameda Research,Binance,Caroline Ellison,Changpeng Zhao,CZ,FTT,FTX,FTX Token,Liquidity,SAM BANKMAN-FRIED,SBF,Trial,Tweet
Link: Changpeng Zhao’s Tweet 'Contributed' to Collapse of FTX: Caroline Ellison [Copy]
