The disgraced founder of crypto exchange FTX Sam Bankman-Fried reportedly says that Alameda Research did not attempt to hedge after its assets dipped $30 billion in value.
According to court transcripts released by Inner City Press on the social media platform X, when questioned by defense attorney Mark Cohen about Alameda’s assets, Bankman-Fried said that they had not been hedged as of June 2022 – right around the time when the firm saw its assets dip from $40 billion to $10 billion.
Bankman-Fried testified that at the time, he proposed a $2 billion hedge which ultimately wasn’t enacted by ex-Alameda chief executive Caroline Ellison and former FTX product lead Ramnik Arora.
Bankman-Fried also said that he was approached by Ellison, who appeared nervous and told him that she believed Alameda had already gone bankrupt.
The former CEO is accused of mishandling billions of dollars worth of customer funds as well as defrauding investors.
Bankman-Fried and other FTX executives allegedly siphoned money from customers of FTX – who were under the belief that their funds were in a safe place – into Alameda Research which made crypto bets that went awry.
Earlier this week, Bankman-Fried made the decision to testify in court after damning testimony was given by his ex-colleagues. At the time, Ellison, who is also his former romantic partner, testified that Bankman-Fried directed her to commit fraud and that Alameda had mishandled about $14 billion worth of FTX customer funds between 2020 to 2022.
If convicted of his charges, Bankman-Fried faces decades in prison.
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