for the latest news you need to know.NEW YORK, Oct 31 — FTX founder Sam Bankman-Fried testified yesterday that he believed his Alameda Research hedge fund had enough assets to cover an US$8 billion debt to the cryptocurrency exchange until days before both collapsed.
“If it were far larger, I would have been calling a crisis,” Bankman-Fried said from the witness stand in Manhattan federal court in response to questions from his defence lawyer, Mark Cohen.Prosecutors have said the Massachusetts Institute of Technology graduate looted billions of dollars in FTX customer funds to prop up Alameda, make speculative venture investments and contribute to US political campaigns. If convicted, he could face decades in prison.
On the witness stand in federal court in Manhattan, Bankman-Fried has sought to offer alternative explanations for what happened to the money. He has sought to emphasise that FTX was a “margin” exchange, where many customers, including Alameda borrowed money from other users to place bets.
“It’s my testimony that it depends on the details but that it very well could be a margin trade,” Bankman-Fried said, sighing. ”I’m not saying that’s what happened, and I’m not saying that’s not margin trading.”Bankman-Fried said some of Alameda’s debt to the exchange was the result of FTX customers depositing their money into an Alameda bank accounts — which was necessary because the exchange did not have its own bank accounts.
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