- SBF’s lawyers are pushing the blame on CZ Binance and Caroline Ellison.
- They said CZ Binance created market panic, and Caroline Ellison didn’t follow instructions.
The FTX collapse was a massive occurrence in the crypto industry. So, the trial is already running, and SBF lawyers are shifting the blame to CZ Binance and Caroline Ellison. Here’s what they said.
SBF Lawyers Blame CZ Binance and Ex-Girlfriend Caroline for FTX Collapse
- SBF lawyers are shifting the blame for the collapse of FTX to Changpeng Zhao and SBF’s ex-girlfriend, Caroline. So, many consider this shift of blame disgraceful, as it might not help the case of Sam Bankman-Fried in court. The trial is now officially in progress, and there are many developments already.
- Mark Cohen, SBF’s lawyer, said during the opening statements that SBF did not defraud anyone. Instead, he said that personalities like SBF’s former girlfriend and the founder of Binance are behind the collapse of FTX. So, Cohen says the portrayal of SBF as a “cartoon villain” is wrong. All his acts in the creation of FTX and even in the time of bankruptcy were from goodwill.
- From the side of the prosecutors, they are saying SBF orchestrated the secret diversion of customers’ fiat and crypto deposits to Alameda. So, they further said SBF colluded to steal customers’ funds using hidden back doors within FTX.
Allegations from SBF Lawyers to Former Girlfriend Caroline
- There are allegations from SBF lawyers against the former girlfriend. So, Sam Bankman-Fried left his role as the CEO of Alameda in 2021. The person taking over the role was his former girlfriend, Caroline Ellison. Nevertheless, prosecutors of this case are saying Sam Bankman-Fried was still calling the shots despite leaving the role. On the other hand, SBF lawyers are saying not heeding SBF’s advice was what made Alameda turn insolvent. So, this was during the bear market of 2022.
- Remember, we provided coverage of how Alameda made their losses. So, a former Alameda employee shared how they lost a massive amount of money due to errors. According to SBF lawyers, SBF thought Alameda stopped taking funds meant for FTX. However, Alameda, under Caroline Ellison, was still taking the funds (customers funds).
CZ Binance Takes Blames for FTX Collapse
- The founder of Binance, CZ Binance, was also on the blame list for SBF lawyers. So, these lawyers believe FTX and Alameda were still solvent during the bear market of 2022.
- What caused the issue was the panic from CZ Binance, which made a large number of FTX customers start scrambling for their funds. So, CZ Binance had put out a tweet expressing concern about the two firms. This made customers try to withdraw their funds.
Conclusion
SBF lawyers, in the recent proceedings of the trial, said they are blaming the former girlfriend of SBF and the founder of Binance for FTX collapse. So, they said Caroline Ellison didn’t keep to SBF’s guidelines, and CZ Binance created panic in the market.
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