Ahead Of Bankruptcy Filing, FTX Co-Founder SBF Told By Crypto Execs To ‘Stop Trying To Depege Stablecoins’ – Bitcoin News

According to a recent report published by the Wall Street Journal (WSJ), cryptocurrency executives were reportedly concerned that Sam Bankman Fried’s (SBF) Alameda Research was trying to “unpin stablecoins.” Top executives from crypto exchanges are reportedly members of a Signal chat group called “Exchange coordination,” and Binance CEO Changpeng Zhao (CZ) apparently told SBF to stop causing “more damage.”

Binance CEO has reportedly told SBF to stop causing “more damage” and to “stop trying to depeg Stablecoins”

The Wall Street Journal (WSJ) reports that just before the crypto exchange FTX filed for bankruptcy, there was a conversation between CZ and SBF on November 10, 2022 in a Signal chat group called “Exchange coordination.” The signal group’s chat logs were apparently seen by the WSJ, and high-ranking crypto executives such as Tethers CTO Paolo Ardoino and Kraken co-founder Jesse Powell are reportedly members of the group.

The WSJ report details that SBF was accused of trying to destabilize stablecoins and more specifically tether (USDT). “A Tether official and the head of the world’s largest crypto exchange were alarmed that Sam Bankman-Fried was trying to destabilize the stablecoin,” WSJ reporters Patricia Kowsmann, Alexander Osipovich and Caitlin Ostroff claim. However, in a statement to the WSJ, SBF denied the allegations in the report about the Signal chat conversation.

Kowsmann, Osipovich and Ostroff describe that Binance CEO Changpeng Zhao confronted the SBF about the alleged depegging attempts. “Stop trying to depeg stablecoins,” CZ is quoted as saying. “And stop doing anything. Stop now, do no more harm.”

FTX co-founder Sam Bankman-Fried has recently agreed to testify before the US Congress, and he also discussed the idea of ​​launching a new FTT token with crypto proponent Ran Neuner on December 9. In addition, revelations released this weekend indicate that The Block CEO Michael McCaffrey was secretly given more than $43 million from SBF’s Alameda Research. Shark Tank star Kevin O’Leary also revealed last Thursday that he was paid $15 million to be a spokesperson for FTX.

What do you think about the alleged discussion between CZ and SBF the day before FTX collapsed? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the news editor at Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.