FTX exchange faces allegations of manipulating Bitcoin’s ascent in 2021. Its founder, Sam Bankman-Fried, who witnessed the platform’s bankruptcy in 2022, was subsequently arrested and confronted with multiple charges. As the trial unfolds, testimonies have been gathered from various individuals, including Fried’s ex-girlfriend, Caroline Ellison.
”Keep It Under $20,000”
In 2021, Bitcoin soared to an all-time high of $69,000. Despite this, some analysts believe the figure could have been much higher. Joe Burnett, the product marketing manager at the financial services company Unchained, supports claims that FTX executives attempted to suppress BTC prices. Burnett suggests that the scale of transactions made could have influenced the 2021 Bitcoin bull run.
Recent allegations suggest that under the direction of Sam Bankman-Fried, the former CEO of FTX, instructions were given to Caroline Ellison, the former CEO of Alameda Research, to sell once the spot price of Bitcoin surpassed $20,000. It’s alleged that these sales were executed using customer funds, which were not authorized for such use.
Ellison referenced reports indicating that her company was valued at a negative $2.7 billion in 2021. She also claimed that FTX customers’ assets, including Bitcoin, were used to purchase FTX’s native cryptocurrencies, namely “Sam coins” (FTT, Solana, and Serum).
Bitcoin’s Potential Rise Was Much More Than 69 Thousand
During the 2021 bull, some analysts predicted that Bitcoin’s price could reach $100,000 or even higher. In particular, the Stock-to-Flow (S2F) Bitcoin price model claimed that the price of BTC could rise to $288,000.
When these levels were not reached, both the S2F model and its creator, PlanB, came under great criticism from the cryptocurrency community. However, PlanB claims that he is still hopeful about Bitcoin’s future potential.