Former FTX CEO Testifies About Use of Client Funds
In court, Sam Bankman-Fried, also known as SBF, the co-founder and former CEO of cryptocurrency exchange FTX, testified that utilizing clients’ fiat deposits was part of risk management for his crypto hedge fund, Alameda Research. During the hearing, SBF was questioned about using $8 billion of FTX customers’ funds. He stated that he believed it was folded into risk management but admitted that his focus on FTX was not as strict as it should have been.
No Staff Terminated for Diverting Client Funds
According to a report by Cointelegraph, SBF mentioned that no employees were fired during his tenure at FTX and Alameda Research for diverting client funds for speculative trading. When asked if he knew about specific employees involved in such activities, SBF claimed not to remember any details.
Close Ties with Bahamian Government
SBF revealed that FTX had a close relationship with the Bahamian government. He was questioned about providing premium seats at the Miami Heat Arena to the Bahamian Prime Minister and admitted to assisting the prime minister’s son in securing employment. However, SBF denied discussing settling the national debt of the Bahamas with the prime minister.
FTX Shutdown and Trial Conclusion
Last November, FTX shut down and assured its Bahamian users that their withdrawal requests would be prioritized. The ongoing trial related to FTX is expected to conclude by the end of next week.
AUSA Sassoon: You believed it was permitted, to spend the fiat deposits?
SBF: I thought it was folded into risk management. As CEO of Alameda, I was concerned with their portfolio. At FTX, I was paying attention but not as much as I should have been— Inner City Press (@innercitypress) October 31, 2023
Source: Cointelegraph
Hot Take: Former FTX CEO Testifies About Use of Client Funds and Close Ties with Bahamian Government
The former CEO of FTX, Sam Bankman-Fried, testified in court about the utilization of clients’ funds for risk management purposes. He admitted that his attention to FTX was not as strict as it should have been. Additionally, no employees were terminated for diverting client funds, although SBF claimed not to remember specific details about those involved. The testimony also revealed a close relationship between FTX and the Bahamian government, including providing premium seats to the prime minister and assisting his son in securing employment. The trial related to FTX is expected to conclude soon.