Leaked chats between FTX’s founder and Alameda’s CEO reveal shocking behind-the-scenes discussions during crypto giant’s downfall

The fall of FTX, a once-prominent cryptocurrency exchange, shocked the crypto world, but recent leaks bring to light the internal conversations that might have played a pivotal role in the unraveling of the company.

FTX’s demise began with financial mismanagement and the alleged misuse of billions of its customers’ assets. Public reports detailed how FTX lent $10 billion of its customers’ assets to Alameda Research in 2022. This controversial decision, undisclosed to the public, involved top executives of both companies, including Alameda’s CEO Caroline Ellison and FTX’s iconic founder Sam Bankman-Fried (SBF).

SBF Chat
Source: Unusual Whales

A leaked chat conversation between Caroline Ellison and SBF offers a glimpse into the mindset and strategies employed by the individuals at the heart of this scandal. In the conversation, Ellison suggests tweeting a proposal to CZ, Binance’s CEO, indicating their intention to buy at $22, hoping to counteract the negative PR swirling around their companies. SBF’s response not only aligns with this sentiment but also hints at the assumption that the market might respond positively to such a tweet. Their casual exchange reflects an almost cavalier attitude, displaying little regard for the gravity of the situation and the billions at stake.

This chat is crucial because it highlights a potential attempt to manipulate public perception and the market amid an ongoing financial crisis. The audacity of such a move, given the severe accusations FTX faced, paints a picture of desperation and recklessness.

Further into the conversation, Ellison mentions her intention to tweet that “FTT will go up.” This is significant, as it appears to be an effort to influence market sentiment about FTT, FTX’s native token, during a period when it was facing dramatic price drops. Such a statement, if released publicly, might be viewed as an attempt to manipulate the market, a grave offense in the financial world.

SBF’s subsequent messages hint at FTX’s liquidity challenges, suggesting the importance of freeing up capital due to significant withdrawals, an alarming admission given the backdrop of FTX’s deteriorating financial health.

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