Sam Bankman-Fried took the stand before a jury for the first time in his criminal trial for allegedly defrauding FTX customers. The exchange’s co-founder and former CEO tried to recast the image that prosecutors spent nearly three weeks shaping of an executive who defrauded customers and dismissed the concerns of the three members of his inner circle, all of whom named him as their co-conspirator earlier in the trial.
Responding to his defense team’s gentle questioning, SBF spent large parts of his testimony, offering alternative, often long-winded explanations for actions and behavior that prosecutors allege demonstrated intent to evade legal and regulatory scrutiny of the business he created. He admitted to making mistakes, which supported his defense team’s “failed entrepreneur” strategy, and none more significant than a failure to create a dedicated risk management team.
Bankman-Fried denied committing any crimes or attempting to defraud anyone and said that he believed funds used for sponsorships, real estate purchases, political donations, venture investments and payments to lenders did not come from customer funds. At times, he attempted to shift blame for certain decisions on the inner circle, who he insisted had the authority to take action “on behalf of the company without consulting” him.
SBF described former CEO of Alameda Research, Caroline Ellison, his on-and-off girlfriend, as a good trader and researcher who did not act on his stated concerns about the FTX trading arm’s exposure to market risk and importance of hedging. Ellison, who agreed to a plea deal with prosecutors, testified early in the trial that Bankman-Fried had asked her to manipulate Alameda balance sheets at Bankman-Fried’s direction to make them seem less risky to lenders and that Alameda had used FTX customer funds for its own investments. Prosecutors have promised a robust cross-examination next week. Whether they or Bankman-Fried’s version of events is more persuasive for jurors remains uncertain.
Learn more about your ad choices. Visit megaphone.fm/adchoices
Ex-CFTC Commissioner Berkovitz Says ‘DeFi Should Be Regulated’ – But How? - Ep. 496
The Chopping Block: Wizards vs. Laser Eyes for the Future of Bitcoin - Ep. 495
The Ugly Tradeoffs of Ledger’s New Recovery Service - Ep. 494
Bitcoin’s BRC-20 Mania: Is It Sustainable? - Ep. 493
The Chopping Block: Do Aragon Association Members Get 'Fat Salaries' With 'Zero Accountability'? - Ep. 492
The IRS Wants $44B From Bankrupt FTX. How Is That Possible? - Ep. 491
Writing the Book on FTX’s Downfall: ‘It Was All Just Sam’ - Ep. 490
$630M Due Next Week: Is DCG at Default Risk? - Ep. 489
Do You Need to Think Twice Before Restaking Your Assets? - Ep. 488
The Chopping Block: Why Are We Still Building Layer 1s? - Ep. 487
Coinbase's Legal Action Against the SEC: How It Will Likely Unfold - Ep. 486
Gary Gensler vs. Crypto: What Will the SEC Attack Next? - Ep. 485
The Chopping Block: Are Layer 2s Stealing Ethereum’s Thunder? - Ep. 484
‘Is ETH a Security?’ Why Gary Gensler Couldn’t Give Congress a Straight Answer - Ep. 483
Why MEV Will Always Be Controversial - Ep. 482
The Chopping Block: Are VCs Bad for Crypto? - Ep. 481
Laura’s 10-Year Anniversary of Self-Employment: A Personal Message
Shapella in the Rearview: After Major Upgrade, What’s Next for Ethereum? - Ep. 480
Are DAOs Strong Enough to Survive the Regulators? - Ep. 479
Rep. Emmer on Why He Believes Gary Gensler Is a ‘Bad-Faith Regulator’ - Ep. 478
Create your
podcast in
minutes
It is Free
Pharmacy Podcast Network
Sarah Westall - Business Game Changers
Børsen Morgenbriefing
Startitup podcasty
Wall Street Breakfast