FTX’s Sam Bankman-Fried Spread Fake CZ Rumors For ‘His Scam’

Sahana Kiran
Source – TokenInsight

The downfall of the crypto exchange FTX was witnessed by the entire globe. Sam Bankman-Fried has remained the topic of interest for quite some time now. Just as things were cooling down, more allegations against the former FTX chief began surfacing. This time, however, another prominent crypto personality was being dragged into the controversy.

According to Binance’s Chief Strategy Officer Patrick Hillman, SBF frequently spread false rumors about the CEO of the Binnace, Changpeng Zhao. FTX’s SBF was accused of being racist as well. Hillman tweeted,

“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.”

This allegation garnered steam following a recent article by Skybridge’s Anthony Scaramucci. The article addresses how SBF purchased $45 million for a share in Skybridge. Scaramucci later spent $10 million of that sum on FTX’s native token FTT. However, this investment went to waste following the downfall of SBF’s empire.

In the article, Scaramucci also reported that SBF had been “bad-mouthing” CZ before officials in Dubai. However, the Skybridge chief wasn’t a part of the meeting and a colleague who attended it wired it back to him. The report further read,

“He was lighting CZ up. And these are small towns. They look glitzy from a travel brochure but trust me, these are small, very connected, interconnected towns. It got back to CZ”.

Did this prompt CZ’s decision to sell FTT?

In the article, the author writes that “….also recounted previously, SBF’s denigration of CZ led the latter to suggest publicly that he might consider selling his $500 million investment in FTT tokens.”

However, Hillman clarified that this wasn’t the reason behind Binnace’s decision to sell FTX’s tokens. Noting that SBF “denigrating CZ” was the norm for folks in Binance, he added,

“[It] had nothing to do with deciding to sell the worthless FTT on the company’s books.”