• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Sam Bankman-Fried is confronted with his own words as prosecutors question him in criminal fraud trial
Editor's Pick

Sam Bankman-Fried is confronted with his own words as prosecutors question him in criminal fraud trial

by October 31, 2023
by October 31, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Prosecutors cross-examined FTX co-founder Sam Bankman-Fried on Monday after the former crypto billionaire testified in his own defense.

Bankman-Fried is facing decades in prison on seven federal charges, including wire fraud, securities fraud and money laundering. He has pleaded not guilty to all charges.

The trial is expected to conclude in the next few days.

Several times during cross-examination Monday, prosecutors asked Bankman-Fried questions, then displayed exhibits that disputed his answers.

In one instance, Assistant U.S. Attorney Danielle Sassoon asked Bankman-Fried if he had assured people that Alameda Research played by the same rules as others on the FTX exchange. Bankman-Fried said he was not sure he had done so.

The government then showed a tweet where he had directly addressed the topic, then an email where he wrote that the account of Alameda Research, FTX’s ‘sister’ hedge fund, was like everyone else’s.

FTX co-founder Gary Wang and senior executive Nishad Singh both testified that Alameda was allowed to have a negative balance and a $65 billion line of credit with FTX.

Bankman-Fried completed his testimony for the defense earlier in the day. In that testimony, he tried to rebut charges that were levied against him by FTX insiders like Wang, Singh and former Alameda CEO Caroline Ellison.

For example, Bankman-Fried testified he did not go to the Middle East in October 2022 to raise funds to fill holes in FTX’s balance sheet. He said he viewed Alameda and FTX as solvent and made the trip to speak at a conference and meet with investors, regulators and employees.

He was also asked about a now-infamous, and since deleted, tweet he sent last Nov. 7: ‘FTX is fine. Assets are fine.’

Bankman-Fried said that at the time, he thought that Alameda had some $10 billion in assets and that FTX’s balance sheet was fine.

‘My view was the exchange was OK and there was no holes in the assets,’ he told the court.

However, customers began withdrawing their money faster and faster after some of Alameda’s financial liabilities and its close ties to FTX became public.

Alameda’s assets were cut in half as digital currencies plunged in value. FTX didn’t have enough assets available to handle the $4 billion in daily withdrawals.

Bankman-Fried testified that the hedge trades the firm had used to protect itself from market downturns did not work. He testified earlier that Ellison did not follow instructions to hedge some of its bets. He also testified that he realized on Nov. 8, 2022, that Alameda Research would have to be shut down.

Both FTX and Alameda filed for bankruptcy on Nov. 11.

Bankman-Fried is scheduled to face additional charges at a separate trial in March and has also pleaded not guilty to those allegations.

This post appeared first on NBC NEWS
You Might Also Like
  • The IRS’s new, free ‘Direct File’ service for simple tax returns is now available in 12 states
  • Temple University reviewing reports of potential match-fixing of men’s basketball game
  • Volkswagen braces for showdown with unions after warning of possible German plant closures
  • Stellantis to offer broad buyouts to U.S. salaried workers, warns of possible layoffs
Share
0
FacebookTwitterPinterestWhatsapp

previous post
White House compares ‘chilling’ Russian airport storming to anti-Jewish pogroms of 19th and 20th centuries
next post
Countertrend Rally in the Works for SPX? What the Charts Reveal

You may also like

Netflix kills off cheapest no-ads plan in the U.S. and...

July 20, 2023

Tesla CEO Elon Musk says he favors ‘no tariffs’ on...

May 25, 2024

Autoworkers go on strike at plants at each of the...

September 16, 2023

TurboTax maker barred from advertising ‘free’ services without disclosing who’s...

January 24, 2024

Americans got stingier after a pandemic surge in giving, but...

June 29, 2023

McDonald’s rising prices pushing some diners away

May 1, 2024

‘Stakes are high’ in the Alaska Airlines flight inquiry, NTSB...

January 8, 2024

Google lays off hundreds of ‘Core’ employees, moves some positions...

May 3, 2024

Trump Media reports $16 million loss for quarter as revenue...

August 12, 2024

Wall Street rides to the rescue as 11 banks pledge...

March 17, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp up Max production, CEO says

      May 29, 2025
    • Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

      May 29, 2025
    • Analyzing SIL, USO, and NVDA: Could These Bullish Patterns Trigger?

      May 29, 2025
    • E.l.f. Beauty to acquire Hailey Bieber skin care brand Rhode in up to $1 billion deal

      May 29, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,764 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,470 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,450 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,430 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,307 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,104)
    • Investing (538)
    • Stock (2,578)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp...

      May 29, 2025
    • Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

      May 29, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,104)
    • Investing (538)
    • Stock (2,578)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Nvidia passes Apple as world’s most...

    November 7, 2024

    Dow tumbles more than 600 points...

    August 5, 2024

    Buffett’s Berkshire Hathaway hits $1 trillion...

    August 29, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here