FTX Founder Claims Spending Customer Money Was "Risk Management"

The founder of cryptocurrency exchange FTX, Sam Bankman-Fried (SBF), has defended the use of customers' fiat deposits, stating that it was part of "risk management" for his crypto hedge fund Alameda Research.

SBF's Testimony

During SBF's recent court testimony, he was questioned by prosecutor Danielle Sassoon about the spending of $8 billion of FTX customers' money. SBF replied, "I thought it was folded into risk management. As CEO of Alameda, I was concerned with their portfolio. At FTX, I was paying attention but not as much as I should have been."

SBF also claimed that he was unaware of any employees allegedly siphoning clients' money for speculative trading during his time as CEO of FTX and Alameda.

Close Ties with the Bahamas

Bankman-Fried revealed during the proceedings that FTX had close ties with the government of the Bahamas. Sassoon questioned SBF about giving the Bahamas Prime Minister floor side seats at the Miami Heat Arena, to which SBF replied, "I don't remember that." Sassoon then presented a message suggesting that the prime minister was in FTX's courtside seats with his wife.

SBF denies discussing paying off the Bahamas' debt but admits to helping the prime minister's son secure a job.

FTX Trial Ongoing

The FTX trial is currently ongoing and is expected to conclude before the end of next week. Last year, FTX announced that it would prioritize processing withdrawal requests from Bahamian users before the exchange collapsed.