The drama surrounding FTX and Binance continues, with new text messages showing what happened behind the scenes as the exchange crashed.
The New York Times obtained text messages from a group chat between Sam Bankman-Fried, Changpeng Zhao and other cryptocurrency executives on Nov. 10, the day before FTX filed for bankruptcy.
This series of a dozen or so texts shows that all cryptocurrency executives fear that things will get worse. The worrisome exchange has grown nervous as CZ reportedly accused SBF of trying to manipulate the price of Tether (USDT).
In the text, CZ stated that SBF used Alameda Research to depeg the stablecoin. Binance’s CEO pointed to a $250,000 transaction and said Alameda placed it specifically to destabilize USDT.
Screenshot showing the hashrate of Alameda’s $250,000 transaction on Curve (Source: Etherscan.io)
SBF dismissed the allegations, The New York Times reported.
“Are you saying you think a $250,000 USDT transaction will depeg it?”
CZ responded that a transaction of this size cannot destroy Tether, but could still cause problems.
“My honest advice: Stop doing everything. Put on a suit, go back to Washington, and start answering questions.”
Other executives in the group chat reportedly expressed similar concerns, with messages suggesting they all realize that any volatility in a single crypto could destabilize the entire industry.
Binance declined to comment for this story. A spokesperson for Tether said the company has demonstrated resilience to attacks and that FTX’s actions “do not reflect the spirit and commitment of the industry as a whole.”
SBF issued a statement calling CZ’s claims “ridiculous”.
“A transaction of this magnitude would not materially affect Tether’s pricing, and to the best of my knowledge, neither Alameda nor I have attempted to intentionally de-peg Tether or any other stablecoin. Over the past year, I have committed There were a lot of mistakes, but this wasn’t one of them.”
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James Van Straten · 5 days ago 
Source of information: Compiled from CRYPTOSLATE by 0x Information.Copyright belongs to the author, without permission, may not be reproduced