CZ's accusation that SBF depeged USDT through Alameda

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Written by

Edna Buckley
Published on

December 9, 2022

Key points:

  • New York Times received text messages from a group chat with Sam Bankman-Fried, Changpeng Zhao, and various other cryptocurrency executives the day before FTX filed for bankruptcy.
  • CZ stated that SBF used Alameda Research to depeg the stablecoin. 
  • The Binance CEO pointed to a $250,000 transaction and said Alameda used it specifically to destabilize USDT.
  • SBF issued a statement calling CZ's claims "absurd."
  • A Tether spokesperson said the company had demonstrated resilience to attacks and that FTX's actions "did not reflect the spirit and commitment of the industry as a whole."

The FTX and Binance drama continues, with new text messages showing what was going on behind the scenes when the exchange crashed.

The New York Times received text messages from a group chat with Sam Bankman-Fried, Changpeng Zhao, and various other cryptocurrency executives on Nov. 10, the day before FTX filed for bankruptcy.

This series of about a dozen texts shows that all cryptocurrency executives are worried that things will get worse. The worrisome exchange has grown nervous as CZ reportedly accused SBF of attempting to manipulate the price of Tether (USDT).

In the text, CZ stated that SBF used Alameda Research to depeg the stablecoin. The Binance CEO pointed to a $250,000 transaction and said Alameda used it specifically to destabilize USDT.

Transaction of Alameda $250,000 on Curve. Source - etherscan.ioTransaction of Alameda $250,000 on Curve. Source -

etherscan.io

SBF has denied the allegations, The New York Times reported.

“Are you claiming that you think that $250k of USDT trading would depeg it?”

CZ replied that a transaction of this size would not break Tether, but could still cause problems.

“My honest advice: stop doing everything. Put on a suit, and go back to DC, and start to answer questions.”

Other executives in the group chat reportedly expressed the same concerns, with messages showing that everyone is aware that volatility in a single cryptocurrency could destabilize the entire industry.

Binance declined to comment on this story. A Tether spokesperson said the company had demonstrated resilience to attacks and that FTX's actions "did not reflect the spirit and commitment of the industry as a whole."

SBF issued a statement calling CZ's claims "absurd."

“Trades of that size would not make a material impact on Tether’s pricing, and to my knowledge, neither myself nor Alameda has ever attempted to intentionally depeg Tether or any other stablecoins. I have made a number of mistakes over the past year but this is not one of them.”


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