Sam Bankman-Fried referred to certain customers as ‘unintelligent’

FTX Founder Testifies in Fraud Trial: A Closer Look at Alameda Research and FTX

FTX founder Sam Bankman-Fried is questioned by prosecutor Danielle Sassoon during his fraud trial over the collapse of the bankrupt cryptocurrency exchange, before U.S. District Judge Lewis Kaplan at federal court in New York City, today. Jane Rosenberg/Reuters

The Link Between Alameda Research and FTX

US Assistant Attorney Danielle Sassoon highlighted statements made by Sam Bankman-Fried, the founder of FTX, regarding the relationship between Alameda Research and FTX. Bankman-Fried publicly claimed that these two companies operated independently and that Alameda Research did not receive any special privileges as a customer on the FTX exchange.

Equivocation and Uncertainty

Despite the prosecutor’s questioning, Bankman-Fried repeatedly expressed uncertainty and a lack of recall regarding his previous statements. When asked directly if he recalled saying that FTX and Alameda acted separately, he hesitated and could not confirm the exact phrasing.

Alameda’s Special Treatment

During the trial, Sassoon focused on the issue of Alameda Research’s special treatment. She confronted Bankman-Fried with the question of whether Alameda could withdraw billions of dollars from the FTX exchange using a line of credit without being subject to the auto liquidation protocol.

Bankman-Fried’s response was telling. While he did not outright deny the possibility, he stated that it might be accurate. When pressed further, he confirmed that he did not deny it.

Testimony Continues

Following a lunch break, Bankman-Fried’s testimony is set to resume at 1:45 pm ET. The trial will continue to delve into the intricate relationship between Alameda Research and FTX.

Read More of this Story at www.cnn.com – 2023-10-30 18:48:00