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He was “very surprised” by the extent of the problems when he discovered in October 2022 that his hedge fund Alameda Research had about $8 billion in debt to FTX. Bankman-Fried said this to a jury in New York, American media reported from the court on Friday.
Companions such as Alameda boss Caroline Ellison, on the other hand, testified in the trial that Bankman-Fried made the decisions and wanted to hide the companies’ financial situation.
The US legal system accuses Bankman-Fried of siphoning billions from the assets of FTX customers without their knowledge to finance risky transactions by Alameda Research, among other things. When these deals went south, FTX also found itself in the vortex. According to the indictment, Bankman-Fried allegedly arranged for Alameda to borrow money from FTX without providing the usual collateral. He refers to decisions made by others.
If convicted, the 31-year-old faces a lengthy prison sentence. In the worst case, it could be more than 100 years in prison.
Before its collapse, FTX was one of the largest trading platforms for cryptocurrencies such as Bitcoin. In December, Bankman-Fried was arrested in the Bahamas. FTX had its headquarters there.
(SDA)
Source: Blick
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
