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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.<\/p>\n
According to court transcripts released by Inner City Press on the social media platform X, when questioned<\/a> by defense attorney Mark Cohen about Alameda\u2019s assets, Bankman-Fried said that they had not been hedged as of June 2022 \u2013 right around the time when the firm saw its assets dip from $40 billion to $10 billion.<\/p>\n Bankman-Fried testified that at the time, he proposed<\/a> a $2 billion hedge which ultimately wasn\u2019t enacted by ex-Alameda chief executive Caroline Ellison and former FTX product lead Ramnik Arora.<\/p>\n Bankman-Fried also said that he was approached by Ellison, who appeared nervous and told him that she believed Alameda had already gone bankrupt.<\/p>\n The former CEO is accused of mishandling billions of dollars worth of customer funds as well as defrauding investors.<\/p>\n Bankman-Fried and other FTX executives allegedly siphoned money from customers of FTX \u2013 who were under the belief that their funds were in a safe place \u2013 into Alameda Research which made crypto bets that went awry.<\/p>\n Earlier this week, Bankman-Fried made the decision<\/a> 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.<\/p>\n If convicted of his charges, Bankman-Fried faces decades in prison.<\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>
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