{"id":510632,"date":"2022-11-16T00:55:53","date_gmt":"2022-11-15T21:55:53","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ftx-founder-sam-bankman-fried-triggered-downfall-by-badmouthing-crypto-rival-sources\/"},"modified":"2022-11-16T00:55:53","modified_gmt":"2022-11-15T21:55:53","slug":"ftx-founder-sam-bankman-fried-triggered-downfall-by-badmouthing-crypto-rival-sources","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ftx-founder-sam-bankman-fried-triggered-downfall-by-badmouthing-crypto-rival-sources\/","title":{"rendered":"#FTX founder Sam Bankman-Fried triggered downfall by badmouthing crypto rival: sources"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2d2b31487e7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2d2b31487e7\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ftx-founder-sam-bankman-fried-triggered-downfall-by-badmouthing-crypto-rival-sources\/#%E2%80%9CFTX_founder_Sam_Bankman-Fried_triggered_downfall_by_badmouthing_crypto_rival_sources%E2%80%9D\" >&#8220;FTX founder Sam Bankman-Fried triggered downfall by badmouthing crypto rival: sources&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CFTX_founder_Sam_Bankman-Fried_triggered_downfall_by_badmouthing_crypto_rival_sources%E2%80%9D\"><\/span>&#8220;FTX founder Sam Bankman-Fried triggered downfall by badmouthing crypto rival: sources&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>Three weeks before the implosion of FTX, its disgraced founder Sam Bankman-Fried bad-mouthed a rival crypto mogul at an investor conference in Saudi Arabia \u2014 an indiscretion that sources say may have triggered his downfall, The Post has learned.<\/p>\n<p>The 30-year-old Bankman-Fried \u2014 whose FTX fund filed for bankruptcy on Friday, obliterating his $16 billion personal fortune \u2014 had <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">travel<\/a>ed to Riyadh for the annual \u201cDavos in the Desert\u201d financial summit on Oct. 25 \u2013 Oct.27, where he was angling to raise money from some of the world\u2019s deep-pocketed investors. <\/p>\n<p>But in private meetings at the event, Bankman-Fried, known as \u201cSBF\u201d in crypto circles, raised eyebrows as he \u201ctrashed\u201d ChangPeng Zhao \u2014 the China-born CEO of Binance who, in addition to being one of Bankman-Fried\u2019s early backers, is a highly respected tech founder in the region.<\/p>\n<p>That\u2019s despite the fact that Zhao \u2014 known as \u201cCZ\u201d among crypto enthusiasts with a net worth of $17.4 billion, according to Forbes \u2014 was at the conference, too. When Middle East investors tipped off Zhao that Bankman-Fried had slammed him behind his back, Zhao was furious, according to a crypto observer.<\/p>\n<p>\u201cHe pulled the pin out of the grenade on this trip,\u201d a source said of Bankman-Fried\u2019s trash-talking of Zhao.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/Changpeng-Zhao-99.jpg?w=1024\" alt=\"ChangPeng Zhao\" class=\"wp-image-24664860\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/Changpeng-Zhao-99.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/Changpeng-Zhao-99.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/Changpeng-Zhao-99.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>ChangPeng Zhao and Sam Bankman-Fried had gotten in spats on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>.<\/figcaption><figcaption><span class=\"credit\">Sportsfile for Web Summit via Getty Images<\/span><\/figcaption><\/figure>\n<p>It couldn\u2019t immediately be learned what Bankman-Fried allegedly said about his rival, but competitive tensions between the two have brewed since last year when, according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/technology\/exclusive-behind-ftxs-fall-battling-billionaires-failed-bid-save-crypto-2022-11-10\/\">a\u00a0Reuters report<\/a>, FTX lawyers claimed Binance mucked up its efforts to set up a subsidiary.<\/p>\n<p>Earlier this month,<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coindesk.com\/business\/2022\/11\/02\/divisions-in-sam-bankman-frieds-crypto-empire-blur-on-his-trading-titan-alamedas-balance-sheet\/\"> Coind<\/a>esk published a report that\u00a0Bankman-Fried\u2019s investment firm Alameda Trading\u2019s balance sheet was relying on FTX\u2019s cryptocurrency token, known as FTT.\u00a0 Around this time,\u00a0Zhao sold a massive trove of FTT, which ultimately triggered FTX\u2019s bankruptcy.\u00a0<\/p>\n<p>\u201cIt\u2019s not a coincidence he goes to the Middle East and comes back bankrupt,\u201d the source speculated. \u201cThe trip created the unraveling of the fraud. There\u2019s a direct causation between that marketing junket and Bankman-Fried\u2019s downfall.\u201d<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<div class=\"embed-wrapper twitter\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">As part of Binance\u2019s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1\/4<\/p>\n<p>\u2014 CZ \ud83d\udd36 Binance (@cz_binance) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/cz_binance\/status\/1589283421704290306?ref_src=twsrc%5Etfw\">November 6, 2022<\/a><\/p><\/blockquote>\n<\/div>\n<\/div>\n<\/figure>\n<p>SBF and CZ have lately traded jabs online. Last month, Bankman-Fried tweeted \u2014 in response to a post praising Zhao \u2014 \u201cexcited to see him repping the industry in DC going forward! Uh, he is allowed in DC, right?\u201d \u2014 an <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>arent reference to reported probes of Binance by US regulators over possible illegal trades of crypto derivatives, as well as alleged insider trading and money laundering. <\/p>\n<p>Zhao, meanwhile, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.binance.com\/en\/blog\/from-cz\/a-note-on-bailouts-and-crypto-leverage-421499824684904048\">wrote in a June 23 blogpost<\/a> that FTX\u2019s recent bailouts of other crypto firms, \u201cdon\u2019t make sense,\u201d adding a bit of advice for Bankman-Fried: \u201cDon\u2019t perpetuate bad companies. Let them fail. Let other better projects take their place, and they will.\u201d<\/p>\n<p>In an interview with the New York Times on Monday, Bankman-Fried admitted that he had-bad-mouthed Zhao during meetings with US officials in Washington \u2014 and also admitted that attacking Zhao \u201cwas not a good strategic move.\u201d <\/p>\n<p>\u201cI was pretty frustrated at a lot of what I saw happening, but I should\u2019ve understood that it was not a good decision of me to express that,\u201d Bankman-Fried told the paper without elaborating.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/Bankman-Fried-61.jpg?w=1024\" alt=\"Sam Bankman-Fried \" class=\"wp-image-24664843\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/Bankman-Fried-61.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/Bankman-Fried-61.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/Bankman-Fried-61.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Sam Bankman-Fried attended the so-called \u201cDavos in the Desert.\u201d<\/figcaption><figcaption><span class=\"credit\">Bloomberg via Getty Images<\/span><\/figcaption><\/figure>\n<p>It\u2019s not clear whether Zhao had caught word of Bankman-Fried\u2019s attacks in Washington, or whether the two men spoke to each other at the so-called Future Investment Initiative sponsored by Saudi Arabia\u2019s $600 billion Public Investment Fund. <\/p>\n<p>Both crypto evangelists had nabbed an invitation to Crown Prince Mohammed bin Salman\u2019s exclusive dinner, where they hobnobbed with bank CEOs, private equity titans, and top government officials. <\/p>\n<p>But\u00a0crypto observers wonder whether\u00a0when Zhao heard the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> in Riyadh,\u00a0he decided to take action.<\/p>\n<p>Zhao bought 20% of the exchange for $100 million in 2019 with the plan \u201cto grow the crypto economy together.\u201d But Binance quickly came to see FTX as a competitor and Bankman-Fried decided to buy back his stake from Zhao for $2 billion in 2021. Bankman-Fried paid Zhao partly in FTT, which gave Zhao a roughly $580 million stake in FTX.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/Changpeng-Zhao-98.jpg?w=1024\" alt=\"Changpeng Zhao \" class=\"wp-image-24662079\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/Changpeng-Zhao-98.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/Changpeng-Zhao-98.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/Changpeng-Zhao-98.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Zhao\u2019s tweet on Nov. 6 caused the price of FTT to crash, creating a run on FTX\u2019s holdings that quickly forced it into bankruptcy.<\/figcaption><figcaption><span class=\"credit\">NurPhoto via Getty Images<\/span><\/figcaption><\/figure>\n<p>Zhao tweeted on Nov. 6 that he had decided to liquidate his position, \u201cdue to recent revelations.\u201d The price of FTT crashed, creating a run on FTX\u2019s holdings that quickly forced it into bankruptcy.<\/p>\n<p>\u201cI\u2019m glad it happened now and not in 6 or 12 months when billions more had been poured into it,\u201d a source said.<\/p>\n<p>Over the last few years, Zhao has deepened his relationships in the Middle East. He bought a home in Dubai, and secured licenses for Binance to operate in Dubai, Abu Dhabi, and Bahrain. At the Riyadh event, Zhao spoke at a fireside chat entitled, \u201cThe aspiring Web3 gateway.\u201d <\/p>\n<p>Bankman-Fried, meanwhile, had been asked to speak on a panel, \u201cVision: Innovations with defining impacts on humanity.\u201d According to the program, \u201cTrue innovators do not simply improve old systems; they imagine new realities. When addressing today\u2019s pressing problems, innovators are not bound by the limits of yesterday\u2019s tools.\u201d <\/p>\n<p>A spokesperson for FTX did not respond to request for comment. A spokesperson for Binance did not respond to request for comment.\n                        <\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/11\/15\/ftx-founder-sam-bankman-fried-triggered-downfall-by-badmouthing-crypto-rival-sources\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;FTX founder Sam Bankman-Fried triggered downfall by badmouthing crypto rival: sources&#8221; Three weeks before the implosion of FTX, its disgraced founder Sam Bankman-Fried bad-mouthed a rival crypto mogul at an investor conference in Saudi Arabia \u2014 an indiscretion that sources say may have triggered his downfall, The Post has learned. The 30-year-old Bankman-Fried \u2014 whose&#8230;<\/p>\n","protected":false},"author":1,"featured_media":510633,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/sam-bankman-friedbinance-changpeng-zhao.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[135234,89897,135574,76127,81144],"class_list":["post-510632","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-ftx","tag-sam-bankman-fried","tag-11-15-22","tag-cryptocurrency","tag-saudi-arabia"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/510632","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=510632"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/510632\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/510633"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=510632"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=510632"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=510632"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}