2023-10-27 16:02:59
By Le Figaro with AFP
Published 3 hours ago, Updated 3 hours ago
FTX founder Sam Bankman-Fried takes an oath as he testifies in his fraud trial, in federal court in New York, October 27, 2023. JANE ROSENBERG/REUTERS
FTX founder Sam Bankman-Fried denies defrauding his clients during his New York federal court hearing, while admitting he made “mistakes.”
Former iconic cryptocurrency personality Sam Bankman-Fried admitted on Friday October 27 to management errors, but not fraud, during a hearing expected to be a highlight of his federal trial in New York.
«I made several small mistakes and also big mistakes“, replied the accused to a question from one of his lawyers, Mark Cohen. “The biggest by far was not having a risk management team in place“, he continued. “Have you scammed anyone?», asked him for his advice. “I didn’t do this“, replied “SBF», dressed in a charcoal gray suit. “Have you stolen money from customers?», continued Mark Cohen. “Non“, said Sam Bankman-Fried.
During the first hour of his hearing on Friday, the former darling of cryptocurrencies mainly focused on the creation of his investment company Alameda Research, in 2017, then of the cryptocurrency exchange platform FTX, in 2019.
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$8 billion missing
«SBF» is on trial for having organized the illegal use of funds deposited on FTX without the knowledge of clients. Up to $14 billion was siphoned off to fund Alameda Research’s often risky investments. At the time of FTX’s bankruptcy in November 2022, some $8 billion was missing. The majority has since been recovered by liquidators and is expected to be returned to customers in early 2024.
Arriving in the cryptocurrency landscape in 2019, Sam Bankman-Fried quickly won over the industry, but also well beyond, with his clear and educational speech, the American Congress requesting him, on several occasions, for hearings. But since the opening of this federal trial for fraud and criminal conspiracy, the stature of “SBF» in facetious genius of cryptocurrencies has imploded.
Three key witnesses, former collaborators, also undermined his defense which consisted of accusing his former subordinates, accused of incompetence or thoughtlessness. Defendants in criminal trials in the United States often choose not to testify, to avoid incriminating themselves, particularly during cross-examination by the prosecution.
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