SBF: Being attacked repeatedly by "old grievances"

In the past few days, FTX founder SBF has been attacked again.

Do Kwon, founder of Terra, and Zhu Su, founder of Three Arrows Capital (3AC), successively issued articles denouncing SBF, accusing it of being behind the crash of Terra and the bankruptcy of Three Arrows; Equity disputes behind it.

In addition, Zhu Su also posted that SBF wholly owns the encrypted media The Block, and that SBF is the only source of many of their "exclusive news" and is responsible for controlling the direction of the news. Ultimately, The Block CEO Michael McCaffrey resigned after failing to disclose that he had received a loan from Alameda Research.

(1) The mastermind behind Terra’s crash and Sanjian’s bankruptcy

December 8,Do KwonCiting a long article from The New York Times, Alameda was accused of being the instigator of shorting UST.

"I think it's time for Genesis Trading to disclose whether they provided $1 billion in UST to SBF or Alameda shortly before the crash - purchased from LFG as "interest in participating in the Terra DeFi ecosystem" - not Provides ammunition for a breakaway attack."

According to Do Kwon, SBF/Alameda borrowed 1 billion UST from Genesis Trading to enter the market, prompting UST to take the lead in unanchoring; then, SBF/Alameda borrowed a large number of BTC from many institutions including Voyager ( 10 digits), it is suspected that shorting BTC will reduce the value of LFG's asset reserves, and eventually push Terra & UST into a death spiral.

Do Kwon added that the massive monetary tightening of UST in February 2021 was caused by Alameda, who sold 500 million UST in minutes during the MIM crisis, eventually draining the pool on Curve.

Zhu Su, the founder of Three Arrows Capital (3AC), also stood up to support Do Kwon at the first time, "Someone asked, 'Why did you and Do Kwon come back immediately after the FTX crash? Is this to divert your own problems?' I replied Do Kwon has been continuously developing Luna Classic + Luna 2, and hasn't taken more than a week of Twitter break."

also,

also,Zhu Su also tried his best to prove for himself, saying that 3AC went bankrupt because it was hunted by SBF."From the Bloomberg interview back in July, I have been adamant that we are being hunted. It is true, but it is so out of character that my advisors don't want me to say it because it could be seen as a 'diverter' . In August, several long articles were suppressed by major publishers because editors feared reprisals and lost interviews with SBF. At that time, people kept touting SBF as the JPMorgan Chase or Vanderbilt (American industrialist and philanthropist) in the encrypted world. "

In response to Zhu Su's remarks, SBF simply replied with a tweet, saying that there was a lack of evidence and it was just the other party's speculation."I've made a lot of big mistakes this year. But this isn't one of them. There's no proof because it didn't happen. Please, please, mind your own business." However, SBF did not reply to Do Kwon's query.

Zhu Su replied to SBF: "How do you know? Didn't you say you didn't know what happened in Alameda? It's okay, we can let the Department of Justice (DoJ) decide."

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(2) Equity dispute between Binance and FTX

December 9,CZ postIntroduced the details of the equity dispute between Binance and FTX. CZ said that as an early investor in FTX, Binance became increasingly dissatisfied with Alameda/SBF and finally initiated the exit process 1.5 years ago (July 2021). “SBF was so pissed off when we decided to step down as an investor that he launched a series of offensive tirades against multiple Binance team members, including threatening to “do everything we can to make us pay” — we still have those texts . "

Since then, the SBF has "invested" in friends in high places — from the media to policymakers to celebrities like Kevin O'Leary, CZ added. "He used these networks to manipulate public opinion, including attacks on me and others in the industry. My race was the focus of these attacks. These attacks may continue to be repeated in the Senate hearing next week."

For this,Tweeted by SBFResponding: "There is no need for you (CZ) to lie about the divestment. We initiated the equity acquisition negotiations and we decided to do it because it is important to our business. Although I don't like yours very much' Negotiations' strategy, but I chose to do it anyway. You threatened us to walk out of negotiations at the last minute if you didn't add another $75 million. We agreed because we didn't want Binance to be on our shareholder list .”

SBF concluded by saying: “You and I both know that unless we choose to buy back your shares, you don’t even have the right to withdraw your shares, because many tokens and shares are still locked at that time.”

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(3) Controlling the media and manipulating public opinion

On December 10, it became public that The Block CEO Michael McCaffrey received a $43 million loan from Alameda.

According to Michael’s tweet, The Block was in trouble in early 2021, and he was evaluating whether to sell, merge or reorganize. When he secured a $12 million loan from SBF for his holding company in February 2021, the only option was restructuring. It has since secured an additional $15 million in loans to fund day-to-day operations. Earlier this year, it was awarded another $16 million to purchase personal real estate in the Bahamas.

Due to the concealment of these loan information, Michael McCaffrey also resigned yesterday, chief revenue officer Bobby Moran took over as CEO, and McCaffrey will also resign from the company's board of directors, McCaffrey is still The Block's majority shareholder.

Michael added that no one else at The Block knew about the matter because he didn't want the loan to compromise The Block's objectivity in its reporting on SBF and its companies. He also said he "never attempted to influence FTX, Alameda or SBF's reporting."

However, Zhu Su tweeted to retort that The Block is wholly owned by SBF (the implication is that McCaffrey is a nominee for shares), and that SBF is the only source of many of their "exclusive news", and SBF is responsible for controlling the direction of the entire news editor .

At present, SBF has not issued a response to this matter.