Bankman-Fried retakes the witness stand for cross-examination by prosecutors

FTX laminitis Sam Bankman-Fried once again took the basal successful his ongoing transgression proceedings successful New York connected Oct. 30, this clip to look cross-examination by prosecutors.

Assistant U.S. Attorney Danielle Sassoon began by determining the grade to which Bankman-Fried was progressive with FTX’s sister firm, Alameda Research.

Bankman-Fried admitted to owning 90% of Alameda. However, helium mostly denied that helium was progressive successful Alameda trading successful 2022, stating:

“Depends connected however you specify trading … I would not accidental I was not progressive successful immoderate way.”

Bankman-Fried different said that helium was “not progressive arsenic a wide principle” successful Alameda’s regular trading but took portion successful high-level discussions. He said that helium provided Caroline Ellison, past the CEO of Alemeda, with immoderate input connected trading; specifically, helium admitted that helium gave Ellison immoderate instructions related to Japanese authorities bonds.

Another conception of the cross-examination mostly focused connected whether Bankman-Fried had promised to supply customers with a harmless trading service. Despite those assurances, helium besides made statements suggesting a disregard for idiosyncratic protections — with Sassoon highlighting the information that Bankman-Fried said “f–ck regulators” successful 1 interview.

SBF connected Alameda’s peculiar treatment

Sassoon raised the question of whether FTX treated Alameda Research otherwise from its different customers.

Previous grounds from erstwhile FTX associates suggested that Alameda was allowed to person peculiar privileges specified arsenic a antagonistic equilibrium and unlimited recognition line. Bankman-Fried admitted that astir customers would not beryllium allowed a lasting unlimited antagonistic balance. He besides did not contradict that Alameda could retreat billions of dollars from FTX utilizing a enactment of recognition without falling nether FTX’s automatic liquidation procedures.

He besides said that customers were lone “sometimes” allowed to usage extracurricular investments arsenic collateral, identifying Three Arrows Capital affiliate Crypto Lotus arsenic 1 example. Alameda often utilized FTX’s FTT token arsenic collateral, according to different reports.

Though helium identified those instances of peculiar treatment, Bankman-Fried often testified that helium was incapable to callback whether helium had antecedently said that Alameda was treated the aforesaid arsenic different customers. Sassoon asked respective questions to that effect.

Bankman-Fried nevertheless admitted to stating, astatine 1 constituent anterior to his company’s collapse, that Alameda “had the aforesaid entree arsenic different customers.”

Bankman-Fried remained nether cross-examination astatine the clip of writing.

The station Bankman-Fried retakes the witnesser basal for cross-examination by prosecutors appeared archetypal connected CryptoSlate.