Inside the trial: Days before the collapse, SBF says he thought FTX and Alameda could still be saved

Photo of author

By BitcoinWiki News

Key Takeaways:

– Sam Bankman-Fried, former CEO of FTX crypto exchange, testified in a New York courtroom at his criminal trial.
– Bankman-Fried stated that he believed FTX and Alameda Research could still be saved when users started pulling funds off the exchange.
– He clarified that his tweet about FTX assets being “fine” meant there was no hole in terms of assets.
– Bankman-Fried mentioned being in contact with Changpeng Zhao, CEO of rival exchange Binance, regarding a potential acquisition deal.
– He compiled a list of all Alameda accounts at FTX in October 2022, finding a net asset value of around $10 billion, which he did not consider catastrophic.
– Bankman-Fried believed that a November 2022 CoinDesk article did not include a full list of assets available to the company, such as FTX equity owned by him.
– He insisted that he had been trying to prevent a liquidity crisis at Alameda and had advised the former CEO, Caroline Ellison, to hedge the firm’s trading positions.
– Bankman-Fried and Ellison discussed hedging in Signal messages, but it did not prove helpful when certain coin positions crashed in early November.
– During cross-examination, Bankman-Fried claimed to not remember making certain assurances of solvency to FTX users, despite evidence presented.
– The U.S. assistant attorney Danielle Sassoon conducted the cross-examination.


Sam Bankman-Fried, the former CEO of the failed FTX crypto exchange, testified in a New York courtroom at his criminal trial. He claimed that he believed FTX and sister trading firm Alameda Research could still be saved despite users pulling funds off the exchange. Bankman-Fried discussed a tweet in which he had stated FTX assets were “fine,” clarifying that he meant there was no hole in terms of assets. He also mentioned being in contact with the CEO of rival exchange Binance regarding a potential acquisition of FTX. Bankman-Fried testified that he compiled a list of all Alameda accounts at FTX in October 2022 and found the net asset value was around $10 billion, which he did not consider catastrophic. He dismissed a CoinDesk article as not including a full list of assets available to the firm. Bankman-Fried’s testimony differed from his former subordinates at FTX, as he claimed he had been trying to prevent a liquidity crisis at Alameda and told the former CEO to hedge the firm’s trading positions. However, the hedges did not prove helpful when certain coin positions crashed. During cross-examination, Bankman-Fried claimed not to remember statements he had made assuring FTX users of the company’s solvency, despite being presented with evidence such as tweets and emails.

This is sponsored by: Learn Bitcoin Option

Leave a Comment