Disgraced founder of crypto exchange FTX Sam Bankman-Fried reportedly says Alameda Research didn’t try to hedge after its assets fell $30 billion in value.
According to court transcripts released by Inner City Press on social media platform X, when questioned By attorney Mark Cohen on Alameda’s assets, Bankman-Fried said they were unhedged as of June 2022 — right around the time the company saw its assets drop from $40 billion to $10 billion.
Bankman-Fried testified at the time that he suggested a $2 billion hedge that was ultimately not executed by ex-Alameda CEO Caroline Ellison and former FTX product leader Ramnik Arora.
Bankman-Fried also said he was approached by Ellison, who seemed nervous and told him she believed Alameda had already filed for bankruptcy.
The former CEO is accused of mishandling billions of dollars in customer funds and defrauding investors.
Bankman-Fried and other FTX executives allegedly moved funds from FTX customers — who believed their money was in a safe place — to Alameda Research, which made crypto bets that went wrong.
Earlier this week, Bankman-Fried made the decision to testify in court after his former colleagues gave damning testimony. At the time, Ellison, who is also his former romantic partner, testified that Bankman-Fried directed her to commit fraud and that Alameda mishandled approximately $14 billion in FTX customer funds between 2020 and 2022.
If convicted of his charges, Bankman-Fried faces decades in prison.
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Featured image: Shutterstock/X-Poser