FTX's Bankman-Fried acknowledges 'mistakes,' denies fraud
October 27, 2023
FTX founder and former billionaire Sam Bankman-Fried testified in his own defense at his fraud trial on Friday, acknowledging he made mistakes but denying he defrauded anyone or took customer funds.
The 31-year-old took the witness stand in Manhattan federal court, delivering a much-anticipated testimony in his first address to the jury after 12 trial days.
Sam Bankman-Fried faces seven counts of fraud and conspiracy and is accused of embezzling funds and contributing to the downfall of the prominent cryptocurrency exchange FTX.
What did Bankman-Fried say?
The crypto-currency exchange founder acknowledged that "a lot of people got hurt" when his FTX exchange collapsed. He admitted making "a number of small mistakes and a number of larger mistakes" while running the now-bankrupt exchange.
The biggest mistake, he said, was failing to implement a dedicated risk management team.
"We thought that we might be able to build the best product on the market," Bankman-Fried said. "It turned out basically the opposite of that. A lot of people got hurt, customers, employees, and the company ended up in bankruptcy."
Responding to a question by his lawyer Mark Cohen, as to whether he defrauded anyone or took customers' funds, the former billionaire said: "No, I did not."
Bankman-Fried founded the collapsed cryptocurrency exchange FTX in 2019, after launching the crypto hedge fund Alameda Research in 2017.
Prior to his involvement in the cryptocurrency sector, he worked as a trader on Wall Street. At his peak, Bankman-Fried held a fortune of $26 billion (€24 billion).
rmt/jcg (AP, Reuters)