SBF consistently shaded CZ before FTX collapse: Binance CSO

SBF consistently shaded CZ before FTX collapse: Binance CSO

Patrick Hilmann, the chief strategy officer (CSO) of leading crypto exchange Binance, claimed that Sam Bankman-Fried (SBF), the founder and former CEO of now-defunct rival exchange FTX, had repeatedly criticized Binance CEO Changpeng Zhao (CZ) before FTX's collapse, a behavior that Hilmann described as "shading."

In a recenttweetThe CSO revealed that SBF liked to spread false rumors about CZ and often called him a “bad Chinese guy.”

SBF Constantly Shaded CZ

A great read @WilliamCohan at @PuckNews. One thing they missed was that Sam was CONSTANTLY spreading false rumors @cz_binance, because shadowing him as an “evil Chinese” was crucial to his deception. You can't pretend to be Luke Skywalker without Darth Vader.https://t.co/oi9JxsqPyz

– Patrick Hillmann (@PRHillmann) April 20, 2023

Hilmann's tweet highlighted areportby veteran business writer William Cohan, in which Anthony Scaramucci, popularly known as “The Mooch”, an American financier and founder of SkyBridge Capital, spoke about the state of his relationship with SBF before the demise of FTX.

Among other things, Scaramucci mentioned that he was on a $1 billion fundraising trip to the United Arab Emirates (UAE) with SBF in the weeks leading up to the FTX saga.

AsCryptoPotato reportedIn September, FTX had been in talks with several investors to conduct a $1 billion raising to increase its valuation to $32 billion. Part of the funds raised should save other companies hit by the crypto winter.

During the trip, SBF met with some officials in Dubai, including the United Arab Emirates' sovereign wealth fund, and Scaramucci was not present at most of these meetings as he had other business to attend to. However, a colleague eventually informed Scaramucci that SBF had bad-mouthed CZ during these meetings.

A norm

The Mooch revealed that SBF's behavior was concerning as civility is considered necessary in the corporate world due to the unpredictability of life. Furthermore, CZ could easily learn about the degenerate remarks.

"He lit CZ on fire. And these are small towns. They look shiny from a travel brochure, but believe me, these are small, very connected, interconnected towns. It came back to CZ," Scaramucci said.

Scaramucci further suggested that SBF's comments must have prompted CZ to announce thisliquidateits $500 million investment in FTX’s native token (FTT). But Hilmann clarified that SBF's actions had nothing to do with CZ's decision as the degenerative comments had become the norm.

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