Sam Bankman-Fried, co-founder of FTX, testified in a New York court, acknowledging that he approved billions of dollars of investments for Alameda Research, even though the company had not properly hedged its risk. Both companies eventually collapsed. Assistant US Attorney Danielle Sassoon focused on money Alameda paid out during the summer of 2022. Bankman-Fried could face decades in prison for directing the transfer of FTX customer funds into Alameda for investments, political donations, and real estate. He chose to testify in his defense to counter the testimony of five former FTX officials who had incriminated him.
His performance on the stand began well but later became less certain as the questions approached FTX's November 2022 failure. Sassoon confronted Bankman-Fried with his public and private statements that contradicted his testimony regarding the FTX collapse. She emphasized his support for regulation in the crypto industry in contrast to his private messages expressing frustration with regulators.
Sassoon characterized Bankman-Fried as a storyteller who tailored his testimony after months of reviewing the government's evidence. She examined dozens of his comments made on Twitter, in interviews, before Congress, and on Slack.
Bankman-Fried's testimony has been a significant moment in the trial, with reporters queuing overnight to secure press seats in the courtroom. The prosecutor also questioned his public image, including his appearance, as she sought to challenge his self-perception and intelligence.
Sam Bankman-Fried's trial represents a pivotal moment in his legal proceedings as he faces charges related to the collapse of FTX and Alameda Research.
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