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The disgraced former CEO of the bankrupt crypto exchange FTX is testifying in his own fraud trial against the US government.<\/p>\n
In court transcripts recorded by Inner City Press, Sam Bankman-Fried (SBF) recounts<\/a>\u00a0the day that Binance\u2019s Changpeng Zhao (CZ) tweeted that the world\u2019s largest crypto exchange by trading volume was liquidating<\/a> all of its FTX Token (FTT).<\/p>\n \u201cCohen (SBF\u2019s lawyer): Let\u2019s go to Nov 6.\u00a0<\/em><\/p>\n SBF: It\u2019s [a tweet] from CZ.<\/em><\/p>\n Cohen: He wrote, we are liquidating FTT on our books, yes?<\/em><\/p>\n SBF: Yes. I discussed with Caroline [Ellison] whether we should send a tweet in response. Customer withdrawal grew to $1 billion on Nov 6. I was concerned.\u201d<\/em><\/p>\n According to SBF, the tweet gave him cause for concern about a\u00a0bank run<\/a>, or that many depositors would withdraw their money simultaneously because they fear FTX may fail. Though SBF claims<\/a> a tweet in response to CZ was meant to help, it appears the damage was already done.<\/p>\n \u201cSBF: I was concerned about a run on the bank.<\/em><\/p>\n Cohen: What is that?<\/em><\/p>\n SBF: Say you have a bank \u2013 \u2026<\/em><\/p>\n Cohen: How did you respond?<\/em><\/p>\n SBF: Caroline sent a tweet, that we would buy FTT at $22<\/em><\/p>\n Cohen: Nov 7, what did you observe as to withdrawals?<\/em><\/p>\n SBF: They increased. On Nov 7, $4 billion of net withdrawals, 100 times an average day. We might be in a liquidity crisis.\u201d<\/em><\/p>\n Bankman-Fried also\u00a0reiterates<\/a>\u00a0that FTX did not invest customer assets.<\/p>\n \u201cCohen: You tweeted that \u2018assets are fine.\u2019 What did you mean?<\/em><\/p>\n SBF: My view was that the exchange was OK, no hole in terms of assets.<\/em><\/p>\n Cohen: You said here, FTX will continue to process withdrawals\u2026<\/em><\/p>\n SBF: FTX did no investment with customer assets.\u201d<\/em><\/p>\n Last week, SBF decided to testify in court after his colleagues took the witness stand to provide damning evidence against him.<\/p>\n Inner City Press\u00a0reported<\/a>\u00a0that Bankman-Fried\u2019s lawyer stated that his client would testify after the defense\u2019s three witnesses in order to rebut statements made by employees of FTX.<\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>
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