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He was “very surprised” by the extent of the problems when he learned in October 2022 that hedge fund Alameda Research owed FTX nearly $8 billion. Bankman-Fried told a jury in New York, US media reported from the court on Friday.
Friends such as Alameda boss Caroline Ellison testified at the hearing that Bankman-Fried made the decisions and wanted to hide the companies’ financial situation.
The US justice system accuses Bankman-Fried of, among other things, diverting billions of dollars from FTX clients’ assets without their knowledge to finance Alameda Research’s risky transactions. When these deals went wrong, FTX was caught in the vortex. According to the indictment, Bankman-Fried is said to have enabled Alameda to obtain a loan from FTX without providing the usual collateral. It refers to decisions made by others.
The 31-year-old faces a lengthy prison sentence if convicted. In the worst-case scenario, a prison sentence of more than 100 years could be in question.
Before the crash, FTX was one of the largest trading venues for cryptocurrencies like Bitcoin. In December, Bankman-Fried was arrested in the Bahamas. FTX was headquartered there. (SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
