FTX Founder Points Blame at Ex-CEO for Alameda’s Use of Customer Funds
During the third day of his testimony in the trial of United States v Sam Bankman-Fried, FTX founder Sam Bankman-Fried continued to hold ex-CEO Caroline Ellison responsible for Alameda Research’s handling of customer funds. Bankman-Fried claimed that Ellison admitted to inadequate hedging at the crypto trading firm and subsequently resigned. He stated that they both decided to move forward with running FTX and Alameda in an effort to fix the businesses.
“In September, I asked her again about hedging. I asked what the scale was. She gave me some numbers. I told her I was glad but that it should be a bigger number, at least twice as much. She also sent me some spreadsheets.”
Sam Bankman-Fried, FTX founder
Ellison had previously testified that she prepared misleading spreadsheets for Bankman-Fried during negotiations with crypto lenders to conceal financial issues. Bankman-Fried also acknowledged that using customers’ assets on FTX to repay Alameda’s loans might have weakened the exchange, but he believed the risk was insignificant.
Hot Take: FTX Founder Blames Ex-CEO for Misuse of Customer Funds
In his ongoing testimony, FTX founder Sam Bankman-Fried continued to place blame on ex-CEO Caroline Ellison for Alameda Research’s mishandling of customer funds. While Bankman-Fried acknowledged his awareness of the potential risk to FTX by using customers’ assets to repay loans, he maintained that Ellison was primarily responsible for the inadequate hedging and misleading financial practices. The trial will conclude with Bankman-Fried’s testimony followed by rebuttal witnesses and a defense from his attorneys. This case highlights the importance of transparent and responsible handling of customer funds in the cryptocurrency industry.
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