NEW YORK: FTX founder Sam Bankman-Fried was challenged on Monday over interviews following the cryptocurrency exchange's collapse, in which he said he was not involved in his Alameda Research hedge fund's trading.
The questioning by prosecutor Danielle Sassoon, on the second day of Bankman-Fried's testimony in his own defence at his fraud trial, was part of an effort to undercut the 31-year-old former billionaire's credibility after he told jurors last week he did not steal customers' money.
Bankman-Fried has pleaded not guilty to two counts of fraud and five counts of conspiracy. Prosecutors have said he 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.
"My view at the time was the exchange was okay, and there was no hole in terms of assets," he said, referring to his state of mind when he tweeted on Nov 7, 2022, four days before the exchange declared bankruptcy,"FTX is fine. Assets are fine ... we don't invest client assets. The Massachusetts Institute of Technology graduate told jurors that Ellison had failed to make trades that would offset the risk of falling cryptocurrency prices starting in mid-2022.