Accusations of Racism and Fake Rumors
Binance Chief Strategy Officer Patrick Hillman has accused FTX’s CEO Samuel Bankman-Fried (SBF) of spreading false and racist rumors about Binance CEO Changpeng Zhao (CZ) before FTX’s collapse. According to Hillman, SBF attempted to paint CZ as an “evil Chinese” figure to further his own agenda.
A great read by @WilliamCohan at @PuckNews. One thing they missed, Sam was CONSTANTLY spreading fake rumors about @cz_binance, because shading him as an "evil Chinese" was critical to his scam. You can't pretend to be Luke Skywalker without Darth Vader.https://t.co/oi9JxsqPyz
— Patrick Hillmann (@PRHillmann) April 20, 2023
Behind the Scenes: FTX’s Demise Unfolds
A recent Puck magazine article featuring Anthony Scaramucci of Skybridge Capital reveals the story of SBF purchasing a $45 million stake in Skybridge. Scaramucci then invested $10 million of that sum in FTT, FTX’s native token, which became nearly worthless after FTX’s collapse in November.
SBF’s Disparaging Remarks About CZ
The Puck article describes how SBF had been “bad-mouthing” CZ during meetings in Dubai, which reportedly reached CZ’s ears through interconnected networks in the region. This led to CZ suggesting that he might sell his $500 million investment in FTT tokens.
A Long-Standing Personal Rivalry
SBF and CZ’s rivalry is well-documented. Binance had once offered to rescue FTX with a $1 billion buyout when the exchange was struggling but still operational. However, Binance withdrew the offer after performing due diligence on the company, and FTX filed for bankruptcy shortly after.
Allegations of Tether Manipulation
CZ accused SBF of attempting to “depeg” tether, a stablecoin whose value is tied to the U.S. dollar. FTX’s sister hedge fund, Alameda Research, had recently sold $250,000 of Tether. Though the amount was too small to impact tether’s value, it could have caused fear in a thin market.
CZ’s Advice for SBF
CZ advised SBF to cease his actions and face the consequences in Washington, D.C. SBF denied trying to depeg tether, questioning the accusation based on the small trade amount.
Hillman Denies Animosity’s Impact on Rescue Deal
Patrick Hillman refuted the claim that the animosity between SBF and CZ influenced Binance’s decision to back out of the rescue deal or sell its FTT holdings. He stated that SBF’s disparaging remarks about CZ were “the norm” and unrelated to the FTT investment decision.
Sam denigrating CZ was the norm for us, @WilliamCohan. Had nothing to do with deciding to sell the worthless FTT on the company's books.
— Patrick Hillmann (@PRHillmann) April 20, 2023
