“Dumb motherf**ers”

Prosecutors allege Sam Bankman-Fried portrayed himself differently to his staff, Congress, and on social media. In a heated cross-examination, U.S. assistant attorney Danielle Sassoon confronted the ex-FTX head about inconsistencies in his statements and actions.

She highlighted an FTX advertisement claiming it was a “safe” exchange and probed him about a congressional document in which FTX promised not to misuse customer assets.

Sassoon then confronted Bankman-Fried with his social media posts and private messages, where SBF showed disdain for regulators and criticised Crypto Twitter users. In one message SBF apparently said “f**k regulators.”

She also asked him about a “dumb motherf**ers” tweet, which SBF stated reflected on “some” people on what was then called Twitter. 

When questioned about his storytelling ability, potentially influencing his success in raising billions, SBF seemed uncertain about FTX’s success factors.

Risk Management Bankman-Fried Style

During his time as CEO of FTX and Alameda, SBF stated that no one was fired for allegedly misusing US $8 billion (AU $12.6 billion) of clients’ funds for trading. He claimed it was permissible to spend customers’ funds for his own use.

Bankman-Fried said, “I thought it was folded into risk management. As CEO of Alameda, I was concerned with their portfolio. At FTX, I was paying attention but not as much as I should have been.“

SBF also admitted there had been close relations between the now-closed exchange and the Bahamian government. When questioned about providing the Bahamas prime minister with Miami Heat Arena seats, SBF claimed not to recall, despite Sassoon presenting a message suggesting otherwise.

The Accused Struggles with Memory of Events

Throughout his testimony, Bankman-Fried consistently responded evasively and frequently claimed not to recall past statements. On Tuesday, the former crypto magnate struggled to defend his actions during FTX’s final days, with prosecutors highlighting his risk-taking. Former associates testified over four weeks that he was instrumental in key decisions at the doomed exchange.

The MIT graduate faces charges of fraud, embezzlement, and conspiracy and could spend decades in prison if convicted. His rapid ascent with FTX, once the world’s second-largest crypto exchange, made him a tech billionaire before his fall.

Now it’s over to the prosecution who will begin their closing arguments Wednesday local time.

The post Risk Management à la SBF: When Client Spending Becomes Strategy appeared first on Crypto News Australia.

Filed under: Bitcoin - @ November 1, 2023 2:50 am