Day Three Of SBF Testimony Fills With Evasive And Vague Answers: Report

Key Points:

• FTX co-founder Sam Bankman-Fried testified in a fraud case about his role in the bankruptcy of FTX and Alameda Research, providing vague and evasive responses.
• Despite being accused of orchestrating a multibillion-dollar fraud at FTX, Bankman-Fried distanced himself from daily decisions at Alameda and focused on resolving issues rather than attributing blame.

SBF testimony on the day three was marked by evasiveness. He disputed claims of misusing funds and distanced himself from key decisions, as per BBG.

Sam Bankman-Fried (SBF), the co-founder of FTX, testified in a trial concerning his alleged role in the bankruptcy of FTX and Alameda Research, both companies he founded. SBF testimony was marked by evasive and vague responses, with federal prosecutor Danielle Sassoon exposing contradictions in his public statements about the companies’ collapse.

A key part of the case involves the misappropriation of funds, with Sassoon presenting a chart showing Alameda’s $11.3 billion expenditure of FTX customer funds. Bankman-Fried disputed this, leading to tense exchanges.

The 31-year-old’s decision to testify was seen as a gamble, with five former FTX employees accusing him of orchestrating a multibillion-dollar fraud at FTX. Sassoon questioned Bankman-Fried’s lack of knowledge about the spending of $8 billion in customer funds at Alameda, to which he responded that he was not interested in attributing blame and couldn’t recall specific employees.

Bankman-Fried’s Decision to Testify and His Interactions with Key Figures

On the stand, he distanced himself from daily decisions at Alameda, denying that he authorized the spending of FTX customer funds even as CEO. He admitted to making key decisions about some of Alameda’s major venture investments. He also stated that he learned Alameda had borrowed $10 billion from FTX in 2022, but was more focused on resolving the issue than attributing blame.

SBF testimony was further complicated by questions about his social interactions with politicians and celebrities, including a dinner with former US president Bill Clinton and former UK Prime Minister Tony Blair, which he struggled to recall accurately. His lawyer, Mark Cohen, attempted to mitigate the damage in follow-up questions, allowing Bankman-Fried to expand on his previous answers.

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