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