Founder of FTX Accuses Binance of Leaking Alameda's Financial Reports

During a legal dispute, a document from November 2022 emerged, indicating that Sam Bankman-Fried had regarded Binance as FTX's primary competitor. He alleged that Binance's leadership was responsible for leaking confidential information to the media, specifically related to the balance sheet of Alameda Research, which was later reported by CoinDesk.

On November 2nd, it was reported that FTX's subsidiary trading firm faced a potentially precarious situation, as a significant portion of its assets was in the form of FTT tokens. SBF claimed in a note, "[Binance] leaked the balance sheet, wrote about it in a blog, handed it to CoinDesk, and then publicly announced selling FTT worth $500 million, simultaneously warning clients to be cautious of FTX."

This sequence of events likely contributed to the downfall of FTX and Alameda, as FUD (fear, uncertainty, doubt) led clients to withdraw their funds, causing a liquidity crisis.

In the same document, Bankman-Fried mentioned Justin Sun, the founder of Tron and an advisor to HTX, as a potential investor. However, he made a note that Sun was "close to [Binance's CEO] Changpeng Zhao (CZ)."

SBF emphasized in the note that while FTX was adequately capitalized, it was not infinitely liquid. Nevertheless, the document revealed that only one-third of the $12 billion in client funds was available for withdrawal, amounting to $4 billion.

Former Alameda programmer Aditya Bharadwaj previously disclosed how the company had lost at least $190 million due to a lackadaisical approach to security. Many employees fell victim to phishing attacks and fraud.

It's worth mentioning that the former CEO of the trading firm, Caroline Allison, provided testimonies in court the day before. She revealed that SBF had plans to become the company's president and shared a list of things that irritated him.