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Former Alameda CEO: Changpeng Zhao’s tweets “contributed” to FTX’s collapse

Former CEO of Alameda Research, Caroline Ellison, testified that a tweet from Binance CEO Changpeng Zhao (CZ) caused the collapse of the cryptocurrency exchange FTX. In the tweet on November 6, 2022, CZ announced that Binance would liquidate its holdings of FTX tokens (FTT). Many reports claim that the liquidation of the tokens caused retail investors to follow Binance in withdrawing from FTX. The platform's run on withdrawals led to FTX ceasing withdrawals and filing for bankruptcy on November 11th. Ellison stated that while CZ's tweet "contributed" to the collapse of FTX, the main reason was that Alameda borrowed 10 billion US dollars from the exchange that they were "unable to repay".

Changpeng Zhao CZ FTX
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