{"id":7208,"date":"2023-10-30T18:52:01","date_gmt":"2023-10-30T18:52:01","guid":{"rendered":"https:\/\/infundpros.com\/business\/sam-bankman-fried-grilled-on-public-statements-about-ftx-ahead-of-its-collapse\/"},"modified":"2023-10-30T18:52:01","modified_gmt":"2023-10-30T18:52:01","slug":"sam-bankman-fried-grilled-on-public-statements-about-ftx-ahead-of-its-collapse","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=7208","title":{"rendered":"Sam Bankman-Fried grilled on public statements about FTX ahead of its collapse"},"content":{"rendered":"<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=fd359709-655a-4666-a6d8-a6b8a6d00682\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Sam Bankman-Fried was confronted with tweets, media interviews and sworn testimony in which he repeatedly vouched for FTX\u2019s governance and risk management, as New York prosecutors began to cross-examine the former tycoon over his cryptocurrency exchange\u2019s multibillion-dollar collapse.<\/p>\n<p>The 31-year-old, who had earlier answered questions from his own lawyers, also admitted to calling a \u201cspecific subset\u201d of crypto investors \u201cdumb motherfuckers\u201d and conceded he had referred to his advocacy for crypto regulation as \u201cjust PR\u201d in the days leading up to his arrest last December.<\/p>\n<p>He also admitted to writing \u201cfuck regulators\u201d to a reporter in November 2022.<\/p>\n<p>During questioning by assistant US attorney Danielle Sassoon, Bankman-Fried was presented with an audio recording of an interview in which he had claimed to not be \u201cinvolved at all\u201d in the running of FTX\u2019s affiliated hedge fund Alameda Research. Moments earlier, he acknowledged in testimony that he was still involved in some discussions over the firm\u2019s trading strategy.<\/p>\n<p>The barrage of evidence came as the trial against Bankman-Fried entered its fifth week, having previously featured testimony from some of the former billionaire\u2019s closest friends and colleagues, including Caroline Ellison, Gary Wang and Nishad Singh, all of whom are co-operating with prosecutors.<\/p>\n<p>Under direct examination from his defence lawyer earlier on Monday, Bankman-Fried testified he believed FTX \u201chad no holes on its balance sheet\u201d just days before it collapsed into bankruptcy with $8bn of customer deposits missing.<\/p>\n<p>Presented with a tweet from November 7 2022 \u2014 four days before the exchange declared bankruptcy \u2014 in which he said \u201cFTX is fine\u201d, Bankman-Fried maintained that at the time the exchange itself \u201chad effectively no liabilities\u201d and that there was \u201cno hole in terms of assets\u201d.<\/p>\n<p>He added: \u201cFTX did not do any investments with customer assets.\u201d<\/p>\n<p>However, he conceded that at that point the exchange was \u201con the verge of a liquidity crisis\u201d as customers were withdrawing billions of dollars per day after the founder of competing exchange Binance cast doubt over FTX\u2019s finances.<\/p>\n<p>He also testified he had left it to Ellison, who ran Alameda Research, to hedge the trading firm\u2019s positions after its balance sheet deteriorated in the summer of 2022. When updated on that strategy in September, Bankman-Fried said he felt the company \u201ccould have hedged twice as much\u201d.<\/p>\n<p>Bankman-Fried, who has pleaded not guilty to all charges, was later asked by Sassoon whether he agreed that he knew \u201chow to tell a good story\u201d, to which he replied: \u201cIt depends on what metric you use\u201d. Before FTX\u2019s collapse, Bankman-Fried was one of the best-known figures in the nascent crypto industry, becoming a mainstay of media coverage and hobnobbing with politicians and celebrities. <\/p>\n<p>He added that he told \u201cwhat I thought was the truth about the company\u201d to journalists, investors, and the US Congress, before being presented with testimony to Congress from May 2022 in which he said FTX offered protections to customers including maintaining sufficient liquid assets to always meet withdrawal requests. The exchange was unable to meet such requests in November of that year, and was forced into bankruptcy.<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.ft.com\/content\/fd359709-655a-4666-a6d8-a6b8a6d00682\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Sam Bankman-Fried&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":{"0":"post-7208","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Sam Bankman-Fried grilled on public statements about FTX ahead of its collapse | inFundPros<\/title>\n<meta name=\"description\" content=\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Sam Bankman-Fried was\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/infundpros.com\/?p=7208\" \/>\n<meta property=\"og:locale\" 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