Caroline Reveals Sam Fried’s Obsession With Overrunning Binance

In the latest update on the ongoing  FTX court case, former Alameda CEO and Sam Fried’s ex girlfriend Caroline Ellison exposed Sam Fried’s apparent frenzied imagination of shutting down Binance in an exclusive disclosure that sent shockwaves across the cryptocurrency community

 Caroline, on Wednesday, testified before a congressional committee and revealed a turbulent background to the purported collaboration between  FTX and Binance. According to Caroline’s latest testimony, Sam Fried and Changpeng Zhao, the creator of Binance, initially started their connection as a business partnership.

In December 2019, Binance made a strategic investment in FTX, indicating what appeared to be a successful alliance of two key participants in the cryptocurrency market. The public was convinced Binance and FTX’s investment partnership had ended amicably. She revealed that the two CEOs kept their cool in front of the media and gave no details about how they decided to part ways. Caroline’s latest evidence was said to conceal a much more contested reality.

Caroline Indicts Sam Fried, Hints On Breach Of Fiduciary Duty

Also, in her testimony, Caroline said that Sam used a stunning $1 billion in customer deposits to finance the takeover because he was desperate to separate from Binance. The admission that such a sizable sum of client money was utilized to accomplish this purchase has sparked considerable debate among government officials, cryptocurrency stakeholders, and the entire cryptocurrency community.

The recent revelation by Caroline, according to Okoya David, an analyst with Daily Coin, has created ethical and legal concerns that can jeopardize the faith and confidence of cryptocurrency investors worldwide. As of press time, regulatory organizations and stakeholders are examining the acquisition, and legal repercussions is likely to follow.

Also, in her evidence, Ellison noted the possibility that this conduct would constitute a breach of fiduciary duty, given that customer deposits are usually kept to protect user assets and guarantee an exchange’s liquidity. This revelation has spiked a debate about whether such a sizable withdrawal of consumer funds, even for an authorized business purpose, complies with regulatory requirements.

In Caroline’s sworn testimony, Sam Fried had effectively lobbied and gotten assurance from the regulators to harass Binance exchange. It also stated that Sam gradually grew impatient when the regulators were not fulfilling their promises to him. During this time, Caroline did not specify the exact regulators in question. She also said Sam was obsessed with this plan since he believed it was the only way to dominate the market.

Sam Fried’s Supporters Moves To Exonerate Him, Blames Competition

Ellison’s testimony has received a varied response from different parts of the cryptocurrency community. The team at Binance has denied the accusations, adamant that they have acted following all moral and legal requirements. They went ahead to stressed their dedication to upholding transparency and protecting customer assets.

Supporters of Sam contend, however, that the intense competition in the cryptocurrency market may have compelled him to take extreme measures to preserve FTX’s position. They think business players who want to keep or gain ground frequently employ such strategies.

David also added that this information has negatively impacted the cryptocurrency market, which is already dealing with several regulatory issues. Caroline further asserted that Sam’s desire to sever connections with Binance may have been motivated by factors other than purely commercial disagreements. She also insisted that there were rivalries and personal grudges present.