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FTX Founder Sam Bankman-Fried Testifies on Using Client Funds for “Risk Management”

by BlockNews.com Team
October 31, 2023
in Breaking News, Business, Crypto
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FTX Founder Sam Bankman-Fried Testifies on Using Client Funds for “Risk Management”
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  • SBF claimed spending FTX customers’ money was just part of “risk management” for Alameda Research while he was CEO of both companies.
  • Remarkably, SBF says no one was fired for allegedly misappropriating $8 billion of FTX client money for speculative trading.
  • SBF’s testimony reveals questionable practices like discussing paying off the Bahamas’ debt and prioritizing Bahamian users for withdrawals before FTX collapsed.

The ongoing FTX trial has revealed more details about Sam Bankman-Fried’s questionable practices as CEO of both FTX and Alameda Research. His latest testimony provides insight into how he justified spending clients’ money.

🚨 NEWS: Sam Bankman-Fried testified that using client funds was part of FTX's "risk management."

SBF further revealed ties with the Bahamian government.

Hinting at interactions with the Prime Minister and his son 👀 pic.twitter.com/9slmioFkqP

— BlockNews.com (@blocknewsdotcom) October 31, 2023

SBF Says Spending FTX Customers’ Money Was Part of Risk Management

During his court testimony, SBF claimed that spending FTX customers’ fiat deposits was just part of “risk management” for Alameda Research. As CEO of both companies, he thought this spending was permissible. However, he admits he should have paid closer attention to FTX.

No One Fired for Allegedly Misusing $8 Billion of Customers’ Funds

Remarkably, SBF says no one was fired for allegedly misappropriating $8 billion of client money for speculative trading. He claims ignorance about which employees were involved.

FTX’s Close Ties with the Bahamas Government

SBF also disclosed FTX’s close ties with the Bahamian government during his testimony. This included providing prime seats to the Bahamian Prime Minister at a Miami Heat game.

SBF Discussed Paying Off The Bahamas’ Debt

Allegedly, SBF even discussed paying off the Bahamas’ national debt. He denies this but admits helping the Prime Minister’s son get a job.

The Bahamas Prioritized for Withdrawals Pre-Collapse

Just before FTX collapsed, it announced Bahamian users would be prioritized for withdrawals. The trial continues this week.

Conclusion

SBF’s testimony reveals questionable practices and favoritism while he was CEO of FTX. His claim that spending client funds was just “risk management” shows his cavalier attitude toward customers’ money. The trial continues to expose more stunning details as it unfolds.

Tags: Alameda ResearchcryptoFTXSam Bankman-FriedSBF
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