• FTX founder Sam Bankman-Fried (SBF) recently created a Substack newsletter and charged people $80 a year to subscribe
• In his first post on the newsletter, SBF blamed the failure of the cryptocurrency exchange’s subsidiary company Alameda Research on Changpeng Zhao (CZ), the CEO of Binance
• SBF claims he did not “steal funds” and that FTX was affected by the Alameda virus
The cryptocurrency industry has been rocked by yet another scandal, this time involving the founder of the crypto exchange FTX, Sam Bankman-Fried (SBF). SBF recently revealed that he had created a Substack newsletter that people could subscribe to for a yearly fee of $80. In his inaugural post, SBF told a story of how the failure of the cryptocurrency exchange’s subsidiary Alameda Research was largely caused by Changpeng Zhao (CZ), the CEO of Binance.
According to SBF, CZ conducted a successful months-long PR campaign against FTX, culminating in a crucial week or so in November that led to the exchange’s bankruptcy. SBF also claims that FTX was affected by the Alameda virus, a virus that was created by CZ and his team. SBF did not go into detail about the virus, but he did say that it was responsible for the insolvency of the exchange.
In addition to blaming CZ for the failure of Alameda, SBF also firmly stated that he did not “steal funds” or “stash billions away.” SBF was detained by federal authorities in December, but he was released on a record-breaking $250 million bond. He is currently under the custody of his parents at their Palo Alto home in California.
The dispute between SBF and CZ has been ongoing for some time, and it has led to some serious consequences. At one point, a rescue proposal was discussed, but it was ultimately scrapped. This event has raised many questions about the safety of cryptocurrency exchanges and the people that control them. Many in the industry are now questioning the trustworthiness of CZ and the Binance team.
It remains to be seen what the future holds for SBF and FTX. For now, SBF is attempting to clear his name and prove to the world that he did not engage in any illegal activities. He has taken the step of creating a Substack newsletter and charging people for it in order to provide himself with some form of income. Whether or not this will be successful remains to be seen, but it is clear that SBF is determined to prove his innocence.