Evidence presented in court as a part of the ongoing criminal trial against Sam “SBF” Bankman-Fried, former CEO of crypto exchange FTX, reveals SBF believed Binance leaked an Alameda balance sheet to the media in 2022.
On Oct. 11, Caroline Ellison, former CEO of Alameda Research, said SBF created a memo that dates back to Nov. 6, 2022 and that outlined possible investors and other parties to reach out for a bailout.
According to the document, Bankman-Fried wrote that Binance had been “engaging in a PR campaign against us.”
It continued to say that Binance “leaked a balance sheet; blogged about it; fed it to Coindesk; then announced very publicly that they were selling $500m of FTT in response to it while telling customers to be wary of FTX.”
On Nov. 2, 2022, CoinDesk reported that it saw a balance sheet from Alameda and that the firm was possibly not in good standing. This was a key event in the lead-up to the run on FTX and its ultimate bankruptcy.
SBF also noted that FTX was capitalized but not entirely liquid, which Ellison clarified by saying that out of the $12 billion in client assets said to be held by the exchange, only $4 billion was available to process withdrawals.
The document also revealed Justin Sun, the founder of the Tron network and a Huobi adviser, as a potential investor — though it reads that it “turns out he’s close to [Binance CEO] CZ.”
Inner City Press, which has been in the courtroom, reported on X (formerly Twitter) that Ellison said she was “stressed” when Changpeng Zhao tweeted about liquidating his share of FTX Token (FTT).
Ellison: The tweet characterizes the delay as being about anti-spam and nodes. But we just didn’t have the money. AUSA: Are these the tweets of CZ of Binance? Ellison: Yes. He tweeted, “we have decided to liquidate any FTT on our books.” I was stressed out.
This is the second week of Bankman-Fried’s criminal trial. He faces seven charges of conspiracy and fraud tied to the collapse of FTX, to which he has pleaded not guilty.
A second trial is scheduled for sometime in March 2024, during which SBF will face another six charges, including bank fraud and foreign bribery conspiracy charges.
Ellison has been a key witness in the trial thus far and is scheduled for cross-examination by the defense’s attorneys on Oct. 12.
They demolished most of the “blue wall” at the general election, and now the Lib Dems are eyeing up Labour voters.
Strategists see an opportunity in younger people who, over the course of this parliament, may be priced out of cities and into commuter belt areas as they seek to get on the housing ladder or start a family.
Insiders say the plan is to focus more on the cost of living to shift the party’s appeal beyond the traditional southern heartlands.
“There’s a key opportunity to target people who were 30 at the last election who over the next five years might find themselves moving out of London, to areas like Surrey, Guildford,” a senior party source told Sky News.
“We also need to be better at making a case for a liberal voice in urban areas. We have not told enough of a story on the cost of living.
“We need a liberal voice back in the cities – areas like Liverpool, where there is strong support at a council level that we can use as a base to build on.”
Liverpool is a traditional Labour heartland but in January lost its first local authority by-election there in 27 years to the Lib Dems.
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Carl Cashman, the leader of the Lib Dems on the city council, says it’s a result that shows the potential to make gains in areas where the party came third and fourth at the general election.
Image: Carl Cashman is the leader of the Liverpool Liberal Democrats
“One of the cases I have been making to the national party is that Liverpool should be a number one target.
“We are almost at the end of the road when it comes to the Conservatives, so we need to start looking at areas like Liverpool,” he said, adding that Manchester, Sheffield and Newcastle could also be ripe for the taking.
However, the party faces a challenge of making a case for liberalism against the rising tide of populism.
Sir Ed Davey, the party leader, is trying to position himself as the only politician who is not afraid of holding Reform UK leader Nigel Farage to account.
He has recently unveiled a plan to cut energy bills by changing how renewable projects are paid for and says he will boycott Donald Trump’s state dinner. It is these green, internationalist policies that insiders hope can hoover up support of remaining Tory moderates unhappy with the direction of Kemi Badenoch’s party and progressive voters who think Labour is more of the same.
However, strategists admit it is difficult to cut through on these issues in a changing media landscape, “when you’re either viral or you’re not”.
‘Silly stunts’ here to stay
Farage has no such problem, which Davey has blamed on a national media weighted too heavily in favour of the Reform UK leader, given the size of his party (he has just four MPs compared to the Liberal Democrats’ 72).
But the two parties have very different media strategies. This week, on the same day Farage held a Trump-style press conference to announce his immigration deportation plans, with a Q&A for journalists after, the Liberal Democrat leader went to pick strawberries in Somerset to highlight the plight of farmers facing increased inheritance tax.
Image: Sir Ed Davey takes part in strawberry picking with Tessa Munt, the MP for Wells & Mendip Hills. Pic: PA
Some Lib Dems have questioned whether the “silly stunts” that proved successful during the general election are past their shelf life, but strategists say there will be no fundamental change to that, insisting Sir Ed is the “genuine nice guy” he comes across as and that offers something different.
The Lib Dems ultimately see their strength as lying not in the “airwaves war” but the “ground war” – building support on the doorstep at a local level and then turning that into seats.
“Our strategy is seats, not votes. Theirs is votes, not seats,” said the party source, suggesting Farage’s divisiveness might backfire under a first past the post system where people typically vote against the party they disklike the most.
“The next election won’t be about who is saying the meanest things.”
‘Don’t underestimate us’
There is broad support within the party behind that strategy. Cllr Cashman said a greater use of social media could help attract a younger demographic, along with putting forward “really fundamental, powerful liberal ideas” on issues such as housing.
But he said Davey is “never going to do the controversial things Farage does”.
“The way we reach people, the traditional campaigning, is what makes us strong. Just because we are not always on the airwaves, do not underestimate us.”
Image: Reform UK leader Nigel Farage. Pic: PA
For Liberal Democrat peer and pollster Dr Mark Pack, there are reasons to be confident. On Friday, the party won a local council by-election in Camden, north London – “Sir Keir Starmer’s backyard” – with a swing from Labour to the Lib Dems of 19%.
It is these statistics that the party is far more focused on than national vote share – with Labour’s misfortunes opening an opportunity to strategically target areas where voters are more likely to switch.
“One of the lessons we have learned from the past is that riding high in opinion polls doesn’t translate into seats.
“We are really focused on winning seats with the system in front of us. There is a route to success by concentrating on and expanding on what we have been good at.”