This paper reviews several mechanisms, including that betaine may attenuate fatty liver by down-regulating SREBP-1 (sterol regulatory element-binding protein-1) activity. Alcohol may increase SREBP-1 activity by decreasing the activities of AMP-activated protein kinase and sirtuin-1. Tumor necrosis factor-α (TNF-α) produced in response to alcohol exposure may cause fatty liver by up-regulating SREBP-1 activity
Purohit et al (2008). "Molecular Mechanisms of Alcoholic Fatty Liver." Alcoholism: Clinical and Experimental Research Nov 19;. [Epub ahead of print]