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.
Sophisticated drones sending “overwhelming amounts” of drugs and weapons into prisons represent a threat to national security, according to an annual inspection report by the prisons watchdog.
HMP chief inspector of prisons Charlie Taylor has warned criminal gangs are targeting jails and making huge profits selling contraband to a “vulnerable and bored” prison population.
The watchdog boss reiterated his concerns about drones making regular deliveries to two Category A jails, HMP Long Lartin and HMP Manchester, which hold “the most dangerous men in the country”, including terrorists.
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2:28
Ex-convict: Prison is ‘birthing bigger criminals’
Mr Taylor said “the police and prison service have in effect ceded the airspace” above these two high-security prisons, which he said was compromising the “safety of staff, prisoners, and ultimately that of the public”.
“The possibility now whereby we’re seeing packages of up to 10kg brought in by serious organised crime means that in some prisons there is now a menu of drugs available,” he said. “Anything from steroids to cannabis, to things like spice and cocaine.”
“Drone technology is moving fast… there is a level of risk that’s posed by drones that I think is different from what we’ve seen in the past,” warned the chief inspector – who also said there’s a “theoretical risk” that a prisoner could escape by being carried out of a jail by a drone.
He urged the prison service to “get a grip” of the issue, stating: “We’d like to see the government, security services, coming together, using technology, using intelligence, so that this risk doesn’t materialise.”
Image: The report highlights disrepair at prisons around the country
The report makes clear that physical security – such as netting, windows and CCTV – is “inadequate” in some jails, including Manchester, with “inexperienced staff” being “manipulated”.
Mr Taylor said there are “basic” measures which could help prevent the use of drones, such as mowing the lawn, “so we don’t get packages disguised as things like astro turf”.
Responding to the report, the Prison Advice and Care Trust (PACT) said: “The ready access to drugs is deeply worrying and is undermining efforts to create places of rehabilitation.”
Mr Taylor’s report found that overcrowding continues to be what he described as a “major issue”, with increasing levels of violence against staff and between prisoners, combined with a lack of purposeful activity.
Some 20% of adult men responding to prisoner surveys said they felt unsafe at the time of the inspection, increasing to 30% in the high security estate.
Andrea Coomber, chief executive of the Howard League for Penal Reform, said: “This report is a checklist for all the reasons the government must prioritise reducing prison numbers, urgently.
“Sentencing reform is essential, and sensible steps to reduce the prison population would save lives.”
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0:51
May: Male prison capacity running at 99%
The report comes after the government pledged to accept most of the recommendations proposed in the independent review of sentencing policy, with the aim of freeing up around 9,500 spaces.
Those measures won’t come into effect until spring 2026.
Prisons Minister Lord Timpson said Mr Taylor’s findings show “the scale of the crisis” the government “inherited”, with “prisons dangerously full, rife with drugs and violence”.
He said: “After just 500 prison places added in 14 years, we’re building 14,000 extra – with 2,400 already delivered – and reforming sentencing to ensure we never run out of space again.
“We’re also investing £40m to bolster security, alongside stepping up cooperation with police to combat drones and stop the contraband which fuels violence behind bars.”
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The education secretary has said children with special needs will “always” have a legal right to additional support as she sought to quell a looming row over potential cuts.
The government is facing a potential repeat of the debacle over welfare reform due to suggestions it could scrap tailored plans for children and young people with special needs in the classroom.
Speaking in the Commons on Monday, Bridget Phillipson failed to rule out abolishing education, health and care plans (EHCPs) – legally-binding plans to ensure children and young people receive bespoke support in either mainstream or specialist schools.
Laura Trott, the shadow education secretary, said parents’ anxiety was “through the roof” following reports over the weekend that EHCPs could be scrapped.
She said parents “need and deserve answers” and asked: “Can she confirm that no parent or child will have their right to support reduced, replaced or removed as a result of her planned changes?”
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2:45
Sophy’s thought on whether to scrap EHCPs
Ms Phillipson said SEND provision was a “serious and complex area” and that the government’s plans would be set out in a white paper that would be published later in the year.
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“I would say to all parents of children with SEND, there is no responsibility I take more seriously than our responsibility to some of the most vulnerable children in our country,” she said.
“We will ensure, as a government, that children get better access to more support, strengthened support, with a much sharper focus on early intervention.”
ECHPs are drawn up by local councils and are available to children and young people aged up to 25 who need more support than is provided by the Special Educational Needs and Disabilities (SEND) budget.
They identify educational, health and social needs and set out the additional support to meet those needs.
In total, there were 638,745 EHCPs in place in January 2025 – up 10.8% on the same point last year.
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One Labour MP said they were concerned the government risked making the “same mistakes” over ECHPs as it did with the row over welfare, when it was eventually forced into a humiliating climbdownin the face of opposition by Labour MPs.
“The political risk is much higher even than with welfare, and I’m worried it’s being driven by a need to save money which it shouldn’t be,” they told Sky News.
“Some colleagues are rebel ready.”
The MP said the government should be “charting a transition from where we are now to where we need to be”, adding: “That may well be a future without ECHPs, because there is mainstream capacity – but that cannot be a removal of current provision.”
Later in the debate, Ms Phillipson said children with special educational needs and disabilities would “always” have a “legal right” to additional support as she accused a Conservative MP of attempting to “scare” parents.
“The guiding principle of any reform to the SEND system that we will set out will be about better support for children, strengthened support for children and improved support for children, both inside and outside of special schools,” she said.
“Improved inclusivity in mainstream schools, more specialist provision in mainstream schools, and absolutely drawing on the expertise of the specialist sector in creating the places where we need them, there will always be a legal right … to the additional support… that children with SEND need.”
Her words were echoed by schools minister Catherine McKinnell, who also did not rule out changing ECHPs.
She told the Politics Hub With Sophy Ridge that the government was “focused on reforming the whole system”.
“Children and families have been left in a system where they’ve had to fight for their child’s education, and that has to change,” she said.
She added that EHCPs have not necessarily “fixed the situation” for some children – but for others it’s “really important”.