FTX founder Sam Bankman-Fried was said to be badmouthing Binance's Changpeng Zhao, one of SBF's early backers, at a private investor meeting at a conference in Saudi Arabia. It is no coincidence that SBF goes to the Middle East and 'comes back bankrupt,' says one source who believes this event led to the fall of FTX within days.
More:
- SBF traveled to Riyadh for the annual "Davos in the Desert" financial summit Oct. 25-27 to raise money from deep-pocketed investors in the region.
- Binance CEO Changpeng "CZ" Zhao is a highly respected member of the investor community in the region.
- Several sources tipped CZ to the occurrence that SBF had been slamming him behind his back.
- CZ was furious at the realization, leading many to believe this led to the ultimate fall of SBF and FTX.
- Days after FTX declared bankruptcy, SBF admitted to doing the same in Washington, D.C., and said the criticism "was not a good strategic move on my part."
- Coindesk published a report that Alameda Research's trading balance sheet relied on FTX's token, FTT, and not fiat or any other cryptocurrency.
Soon after, CZ announced that Binance would sell its FTT holdings, which caused investors to panic, triggering the FTX bankruptcy.
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