During his ongoing criminal trial, Sam Bankman-Fried
(SBF) faced some tough questions from New York prosecutors today (Monday). The
once prominent figure in the crypto industry found himself cross-examined on
his past statements and admissions, including derogatory remarks about certain
crypto investors and his candid comments on crypto regulation.
The Financial Times reported that during the cross-examination,
prosecutors presented SBF with tweets, media interviews, and sworn testimony,
which he claimed were not related to the running of the defunct crypto
exchange.
These statements were in stark contrast to the
eventual collapse of the exchange, leaving customers with an astounding $8
billion in missing deposits. Notably, SBF admitted to uttering derogatory
comments against FTX’s investors. He also confessed to downplaying his advocacy
for crypto regulation as mere “PR” shortly before his arrest in
December.
SBF’s inconsistent claims further deepened the
mystery surrounding FTX’s collapse. In an interview, he had claimed not to be
“involved at all” in the management of FTX’s affiliated hedge fund,
Alameda Research. However, he later acknowledged his participation in
discussions about the firm’s trading strategy.
Besides that, the trial revealed that, just days
before FTX collapsed, SBF believed the exchange had a solid balance sheet with
no shortfall. On November 7, 2022, he tweeted that FTX was fine.
Yet, it was on the brink of a liquidity crisis as customers withdrew billions
of dollars daily. The doubts cast by the Founder of the competing exchange ,
Binance, exacerbated the situation.
Cross-Examination Unveils Troubling Statements
SBF’s testimony suggested that he entrusted Caroline
Ellison, who managed Alameda Research, to hedge the trading firm’s positions as
the balance sheet deteriorated in the summer of 2022. However, when questioned
in September, he felt that the company “could have hedged twice as
much,” raising questions about his decision-making.
In a separate report by CNN, Assistant US Attorney
Danielle Sassoon asked questions focusing on the contrast between SBF’s role as
the CEO of FTX and the statements he made publicly to the media and Congress.
It became clear that the prosecution was determined to expose any
inconsistencies.
Sassoon asked SBF, “You called the shots as
CEO, didn’t you?” The response was notably vague: “I called some of
them.” This answer hinted at the complexity of decision-making within FTX
and suggested that not all decisions were within the CEO’s sole discretion.
Sassoon presented a compelling argument that FTX’s
sister company, Alameda Research, enjoyed privileges not extended to other
accounts on the FTX platform. Before the court recessed for lunch, Sassoon
probed further into the issue of Alameda’s special privileges.
During his ongoing criminal trial, Sam Bankman-Fried
(SBF) faced some tough questions from New York prosecutors today (Monday). The
once prominent figure in the crypto industry found himself cross-examined on
his past statements and admissions, including derogatory remarks about certain
crypto investors and his candid comments on crypto regulation.
The Financial Times reported that during the cross-examination,
prosecutors presented SBF with tweets, media interviews, and sworn testimony,
which he claimed were not related to the running of the defunct crypto
exchange.
These statements were in stark contrast to the
eventual collapse of the exchange, leaving customers with an astounding $8
billion in missing deposits. Notably, SBF admitted to uttering derogatory
comments against FTX’s investors. He also confessed to downplaying his advocacy
for crypto regulation as mere “PR” shortly before his arrest in
December.
SBF’s inconsistent claims further deepened the
mystery surrounding FTX’s collapse. In an interview, he had claimed not to be
“involved at all” in the management of FTX’s affiliated hedge fund,
Alameda Research. However, he later acknowledged his participation in
discussions about the firm’s trading strategy.
Besides that, the trial revealed that, just days
before FTX collapsed, SBF believed the exchange had a solid balance sheet with
no shortfall. On November 7, 2022, he tweeted that FTX was fine.
Yet, it was on the brink of a liquidity crisis as customers withdrew billions
of dollars daily. The doubts cast by the Founder of the competing exchange ,
Binance, exacerbated the situation.
Cross-Examination Unveils Troubling Statements
SBF’s testimony suggested that he entrusted Caroline
Ellison, who managed Alameda Research, to hedge the trading firm’s positions as
the balance sheet deteriorated in the summer of 2022. However, when questioned
in September, he felt that the company “could have hedged twice as
much,” raising questions about his decision-making.
In a separate report by CNN, Assistant US Attorney
Danielle Sassoon asked questions focusing on the contrast between SBF’s role as
the CEO of FTX and the statements he made publicly to the media and Congress.
It became clear that the prosecution was determined to expose any
inconsistencies.
Sassoon asked SBF, “You called the shots as
CEO, didn’t you?” The response was notably vague: “I called some of
them.” This answer hinted at the complexity of decision-making within FTX
and suggested that not all decisions were within the CEO’s sole discretion.
Sassoon presented a compelling argument that FTX’s
sister company, Alameda Research, enjoyed privileges not extended to other
accounts on the FTX platform. Before the court recessed for lunch, Sassoon
probed further into the issue of Alameda’s special privileges.
