The cross-examination of Sam Bankman-Fried (SBF), CEO of FTX, intensified during the fifth week of the high-stakes trial. SBF faced tough questioning about his involvement in the collapse of FTX and Alameda Research. In his direct examination, SBF discussed his role as CEO and outlined FTX’s strategic goals. He mentioned working on a database to enhance trading speed and accessibility, which he believed could potentially double FTX’s annual revenue. Risk management was also emphasized, with SBF mentioning conversations about hedging with Caroline Ellison and Sam Trabucco from Alameda Research.During the cross-examination, SBF’s stance on cryptocurrency regulation was scrutinized, as well as his choice of words on Crypto Twitter. The prosecution challenged SBF on various statements he had made, including his support for regulation and his use of derogatory language on social media. The trial is still ongoing, and the jury members have not expressed any objections to the proceedings continuing beyond the expected conclusion date.Throughout the questioning, SBF’s recollections were mixed on certain matters, such as Alameda Research’s status as a separate entity and FTX being a neutral market infrastructure. SBF acknowledged certain points raised by the prosecution, including Alameda having accounts with the “Allow Negative” flag and customers being able to withdraw substantial sums without facing liquidation risks. However, he did not dispute these claims.The cross-examination also delved into SBF’s involvement in various financial transactions, such as the purchase of Binance’s equity stake in FTX, investments in Genesis Digital Assets, and the acquisition of Storybook Brawl. Questions were raised about a real estate transaction involving the CEO of The Block, which initially SBF couldn’t recall.SBF acknowledged directing the investment in Modulo Capital but was more cautious in his response when questioned about his role in investing in K5. He stated that he directed “AN investment,” but not necessarily the specific one in question. However, when asked about his decision to invest in Robinhood, SBF affirmed that it was indeed his choice.The prosecution also focused on SBF’s role on the board of directors of Alameda Research Limited. SBF’s response caused confusion, with Judge Kaplan intervening to clarify that SBF owned 90% of the stock and questioned whether he became a director by mistake. SBF firmly denied this.The questioning continued with SBF being presented with an affidavit he had signed, which he did not appear to recognize. The prosecution questioned SBF’s decision to file the affidavit without reading it.SBF was also questioned about his ownership of Robinhood shares and whether he was aware of customers not being able to access their funds during a specific period. SBF acknowledged being aware of the issue but denied considering calling Robinhood to acquire shares.The prosecution further probed SBF on his involvement in directing funds to pay lenders while Alameda was repaying its debts. SBF admitted to directing these payments but argued that he did not believe it posed a significant risk to the FTX exchange. The prosecution emphasized the risk involved in taking money from FTX to repay lenders and questioned whether SBF understood the possibility of a financial hole emerging. SBF acknowledged the inherent risk but disagreed with characterizing the action as margin trading.The focus then shifted to spreadsheets and the sequence of events leading up to SBF’s knowledge of Alameda’s inability to pay. SBF mentioned an alternative spreadsheet, Alt 7, as the one he had seen. When questioned further, SBF appeared uncertain but admitted that there may have been multiple tabs. The prosecution introduced Google metadata indicating that SBF had accessed an alternative spreadsheet.The day’s proceedings concluded with questions about SBF’s involvement in directing venture investments and his efforts to raise funds in the Middle East, which SBF confirmed his participation in. The trial continues, and the intense cross-examination of SBF sheds light on the complexities surrounding FTX and Alameda Research.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Middle East |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | Alameda Research Limited, Storybook Brawl, Genesis Digital Assets, Binance, FTX |
| Currencies | US Dollar |
| Securities | None |
