The memo revealed Alameda Research’s balance sheet to CoinDesk, according to Caroline Ellison’s testimony. It identified potential bailout prospects such as Justin Sun, the founder of TRON and an advisor at Huobi, who is known to be close to CZ. At the time, FTX held $12 billion in client assets but had only a third available for withdrawals.
The situation was further exacerbated by Binance’s sale of $500 million worth of FTT after the leak. Binance, one of the largest cryptocurrency exchanges globally, has yet to respond to requests for comments. However, it had previously issued a public warning to its customers about FTX.
Bankman-Fried is preparing for his defense and plans a “confident tweet thread”. The defense team is set to cross-examine Ellison in the upcoming proceedings. The case continues to unfold as the crypto industry keenly watches its outcome.
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Source: Cryptocurrency - investing.com
