FTX Founder Clarifies Misinterpreted Messages
The trial of former FTX CEO Sam Bankman-Fried resumed with his direct examination by his primary counsel, Mark Cohen. Bankman-Fried aimed to change the narrative presented by the prosecution, particularly regarding text exchanges between him and FTX’s former Director of Engineering Nishad Singh. Bankman-Fried stated that Singh misinterpreted their exchanges before FTX filed for bankruptcy. In one exchange, Singh asked if backdated trades would help him get rid of his debts, to which Bankman-Fried responded that it was “probably fine.” However, Bankman-Fried clarified that he wasn’t sure of Singh’s intentions and was only trying to support him during a difficult time.
Bankman-Fried’s Concern for Singh’s Well-being
Bankman-Fried explained that he knew about Singh’s suicidal state before the bankruptcy filing and had a therapist available for him. He emphasized that his response to Singh’s text was to avoid causing more harm and show support. Another text exchange highlighted by Cohen involved Singh suggesting that Bankman-Fried take blame for FTX’s collapse to restore employees’ faith in the company. Bankman-Fried seemingly agreed, but during his testimony, he clarified that he was not admitting fault for the collapse but acknowledging that employees might be more willing to work with Singh if they believed he wasn’t responsible.
Blaming Former Associate and Lack of Hedging
Bankman-Fried’s lawyers previously suggested that Caroline Ellison, the ex-CEO of Alameda Research, played a role in FTX’s collapse due to her failure to hedge against declining crypto prices. Bankman-Fried confirmed discussions about hedging with Ellison and Sam Trabucco, former co-CEO of Alameda. He mentioned how Ellison initially didn’t heed his advice but later admitted her wrongdoing and offered to step down, though Bankman-Fried left the decision to her. He also indicated that Ellison could have done better with hedging, implying that her negligence may have contributed to the company’s collapse.
Hot Take: Bankman-Fried Works to Change Narrative
During his trial, Sam Bankman-Fried has been focused on changing the narrative presented by the prosecution. He clarified misinterpreted messages between him and Nishad Singh, emphasizing his concern for Singh’s well-being during a difficult time. Bankman-Fried also highlighted the lack of hedging by Caroline Ellison, suggesting that her negligence may have played a role in FTX’s collapse. As the trial continues, Bankman-Fried aims to defend himself against the charges brought against him and reshape public perception of his actions.
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