Sam “SBF” Bankman-Fried, the CEO of FTX and Alameda Research, testified in his ongoing criminal trial in the Southern District Court of New York. He denied any wrongdoing between the two companies but admitted to making mistakes during their rapid growth.Bankman-Fried refuted claims that he directed his inner circle to make political donations, although he acknowledged the role of lobbying in his efforts to establish a regulatory framework for crypto firms in the US.During his testimony, Bankman-Fried discussed the importance of providing sufficient context in written messages, referring to it as the “New York Times test.” He explained that daily communication was conducted through the autodelete feature on Signal, while official communications and regulatory paperwork were handled through other channels.Bankman-Fried also highlighted Alameda’s role as FTX’s payment provider, liquidity provider, market maker, and client. He mentioned the custom features in FTX’s code that allowed Alameda to go negative via a line of credit without triggering the risk engine, thus preventing potential liquidation.The CEO revealed that he frequently discussed hedging strategies with Caroline Ellison, the former CEO of Alameda Research. However, these strategies were never implemented, and Alameda suffered significant losses due to the collapse of the Terra ecosystem and the decline in crypto prices.Bankman-Fried’s defense team is expected to conclude his examination soon, followed by cross-examinations and closing arguments from both sides. If found guilty, he could face up to 115 years in jail on fraud and conspiracy charges. The trial also hinted at a possible rebuttal witness next week.

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