Latest in the FTX trial: Sam Bankman-Fried accuses Binance.

According to court documents, Sam Bankman-Fried alleged that Binance was accountable for disclosing Alameda Research's financial information, which ultimately contributed to the downfall of FTX.

Highlights

• The well-known FTX court case persisted at the Federal Court in New York City on October 11, 2023, with the emergence of new developments.

• Legal documents indicate that Sam Bankman-Fried alleged that Binance and its CEO, Chanpeng Zhao, disclosed Alameda's financial details to the press in 2022.

• The disclosure of this document caused a bank run on FTX, ultimately resulting in its downfall.

Sam Bankman-Fried's criminal trial continued in New York on October 12, 2023, with the disclosure of an FTX internal document during proceedings. The document indicated that Sam Bankman-Fried suspected Binance of leaking Alameda Research’s balance sheet to the media in 2022.

Allegation Against Binance During the ongoing criminal trial, an FTX internal document was presented as evidence. It revealed that Sam Bankman-Fried accused Binance of leaking FTX's balance sheet. He stated that Binance engaged in a PR campaign against FTX, alleging that they leaked a balance sheet and publicly announced selling $500 million of FTT in response to it while advising caution to FTX customers.

Impact of CoinDesk Article An article published by CoinDesk on Nov. 2, 2022, reported figures from Alameda's balance sheet, indicating the firm's possible financial instability. This report led to a mass withdrawal of FTT by investors, ultimately contributing to FTX’s collapse.

Bailout Efforts During the trial, it was revealed that out of the $12 billion in client assets held by FTX at the time of collapse, only $4 billion was available for withdrawals. Sam Bankman-Fried had created a memo outlining potential investors for a bailout, including Justin Sun and a Huobi adviser close to Binance CEO Chanpeng Zhao.

Trial Progress This marks the second week of Sam Bankman-Fried's criminal trial, during which he faces seven charges of fraud and conspiracy linked to FTX's collapse. He has pleaded not guilty.

Key Witness Testimony Caroline Ellison, a significant witness in the trial, is scheduled for cross-examination by the defense’s attorneys on Oct. 12.