Share this @internewscast.com

Prosecutors cross-examined FTX co-founder Sam Bankman-Fried on Monday after the former crypto billionaire testified in his own defense.

Bankman-Fried is facing decades in prison on seven federal charges, including wire fraud, securities fraud and money laundering. He has pleaded not guilty to all charges.

The trial is expected to conclude in the next few days.

Several times during cross-examination Monday, prosecutors asked Bankman-Fried questions, then displayed exhibits that disputed his answers.

In one instance, Assistant U.S. Attorney Danielle Sassoon asked Bankman-Fried if he had assured people that Alameda Research played by the same rules as others on the FTX exchange. Bankman-Fried said he was not sure he had done so.

The government then showed a tweet where he had directly addressed the topic, then an email where he wrote that the account of Alameda Research, FTX’s “sister” hedge fund, was like everyone else’s.

FTX co-founder Gary Wang and senior executive Nishad Singh both testified that Alameda was allowed to have a negative balance and a $65 billion line of credit with FTX.

Bankman-Fried completed his testimony for the defense earlier in the day. In that testimony, he tried to rebut charges that were levied against him by FTX insiders like Wang, Singh and former Alameda CEO Caroline Ellison.

For example, Bankman-Fried testified he did not go to the Middle East in October 2022 to raise funds to fill holes in FTX’s balance sheet. He said he viewed Alameda and FTX as solvent and made the trip to speak at a conference and meet with investors, regulators and employees.

He was also asked about a now-infamous, and since deleted, tweet he sent last Nov. 7: “FTX is fine. Assets are fine.”

Bankman-Fried said that at the time, he thought that Alameda had some $10 billion in assets and that FTX’s balance sheet was fine.

“My view was the exchange was OK and there was no holes in the assets,” he told the court.

However, customers began withdrawing their money faster and faster after some of Alameda’s financial liabilities and its close ties to FTX became public.

Alameda’s assets were cut in half as digital currencies plunged in value. FTX didn’t have enough assets available to handle the $4 billion in daily withdrawals.

Bankman-Fried testified that the hedge trades the firm had used to protect itself from market downturns did not work. He testified earlier that Ellison did not follow instructions to hedge some of its bets. He also testified that he realized on Nov. 8, 2022, that Alameda Research would have to be shut down.

Both FTX and Alameda filed for bankruptcy on Nov. 11.

Bankman-Fried is scheduled to face additional charges at a separate trial in March and has also pleaded not guilty to those allegations.

Share this @internewscast.com
You May Also Like
Trump directs Tehran to 'lay down your arms' or face 'certain death' after US, Israel strikes as he appeals to protesters

Trump Warns Tehran: Disarm Now or Face Consequences After US-Israel Military Action Amidst Protests

President Trump issued a stern directive to Iran’s leadership, military, and police…
Pedestrian Shanna White killed in Winthrop Harbor hit-and-run on Sheridan Road, police say; daughter offers reward in case

Reward Offered After Tragic Hit-and-Run Claims Life of Shanna White in Winthrop Harbor

A tragic hit-and-run incident in Winthrop Harbor resulted in the death of…
Virginia murder suspect in bus stop stabbing had lengthy criminal history, multiple dropped charges

Virginia Stabbing: Unveiling the Troubled Past of a Suspect with a History of Dropped Charges

A Virginia man, facing charges for the fatal stabbing of a woman…
Horror at Iran hospital revealed after regime protest crackdown

Revelations Emerge of Disturbing Scenes at Iranian Hospital Following Government Protest Crackdown

In a shocking display of intimidation, Iranian security forces, disguised in civilian…
Pink in consideration to take over Kelly Clarkson’s talk show slot at NBC

Pink Poised to Shine: NBC Considers Pop Icon to Replace Kelly Clarkson’s Talk Show Slot

In a potential shake-up at NBC, the network is considering Pink as…
Israel will re-invade Gaza if Hamas doesn't abide by Trump's peace plan

Israel Threatens Gaza Re-Entry Over Hamas Non-Compliance with Trump’s Peace Plan

Israel is prepared to re-enter Gaza to dismantle Hamas if the group…
UN Human Rights Council chief cuts off speaker criticizing US-sanctioned official

UN Human Rights Council Halts Speaker Addressing Controversial US-Sanctioned Official

The United Nations Human Rights Council (UNHRC) unexpectedly halted a video presentation…
How the Susan Rice snafu cost Netflix on home stretch of Warner Bros. Discovery deal

Netflix Faces Setback in Warner Bros. Discovery Deal Due to Susan Rice Controversy

A variety of factors contributed to Netflix’s decision to withdraw from the…
US and Israel launch joint strike in Iran, US official says

US-Israel Coalition Conducts Strategic Strike in Iran: Official Report Reveals

In a bold move, Israel carried out a daylight assault on the…
North Carolina woman arrested nearly 50 years after baby found dead in trash bag at landfill

Cold Case Breakthrough: North Carolina Woman Charged with 1970s Baby Death After Decades of Mystery

Close to half a century after the grim discovery of a newborn…
Tour guide arrested after drawing stick figure on 4,000-year-old pyramid

Tour Guide Detained for Sketching on Ancient Pyramid

An Egyptian tour guide has been taken into custody following allegations that…
Biden, 83, jokes about age and brags about his border numbers during rare speech

Biden’s Bold Humor and Border Success: A Rare Speech That Defies Age Stereotypes

In a rare public appearance since leaving office, former President Joe Biden…