New York, Monday, October 30: Sam Bankman-Fried, the founder and former CEO of FTX, testified in court on October 30, 2023, that he made “larger mistakes” at the company, but that he did not intend to defraud anyone or steal customers’ funds.1
The 31-year-old defendant, Bankman-Fried, has entered a not-guilty plea for seven criminal charges, which involve fraud and money laundering connected to the utilization of customer funds from FTX. If found guilty, he might face several decades behind bars.2
One of the biggest mistakes that Bankman-Fried admitted to was not implementing a dedicated risk management team at FTX. He said that he was focused on growing the company rapidly and did not think that risk management was a priority. However, he acknowledged that this was a mistake and that it contributed to the collapse of FTX.
Bankman-Fried also admitted to making mistakes in his handling of Alameda Research, a hedge fund that he also founded. He said that he allowed Alameda to borrow too much money from FTX and that he did not adequately supervise the hedge fund’s activities.
Despite these admissions, Bankman-Fried maintained that he did not intend to defraud anyone or steal customers’ funds. He said that he always acted in what he believed was the best interests of FTX and its customers.
Bankman-Fried’s testimony is part of his trial on fraud and conspiracy charges. He is accused of defrauding investors and customers out of billions of dollars.
- New York Times: https://www.nytimes.com/2023/10/27/technology/sam-bankman-fried-testifies-ftx.html[↩]
- Washington Post: https://www.washingtonpost.com/business/2023/10/27/sbf-trial-ftx-crypto/[↩]
