1:48 p.m. ET, October 30, 2023
Bankman-Fried admits that his hedge fund could withdraw billions from FTX
FTX founder Sam Bankman-Fried will be questioned by prosecutor Danielle Sassoon today before U.S. District Judge Lewis Kaplan in federal court in New York City during his fraud trial over the collapse of the bankrupt cryptocurrency exchange. Jane Rosenberg/Portal
Assistant US Attorney Danielle Sassoon called several of Sam Bankman-Fried’s cases and publicly stated that Alameda Research, FTX’s sister company, which was also a customer on the FTX exchange, did not enjoy special privileges and that the two companies were independent of each other acted.
Bankman-Fried repeatedly contradicted himself, saying he could not remember what he told reporters in various interviews. When asked to answer “yes” or “no,” Bankman-Fried equivocated and analyzed the prosecutor’s wording.
“Do you remember FTX and Alameda trading separately?” asked Sassoon.
“I’m not sure of the exact wording,” he replied.
Just before the court recessed for lunch, Sassoon pressed Bankman-Fried on the issue of special treatment for Alameda.
Sassoon: “Are you denying that Alameda could withdraw billions of dollars from the FTX exchange using a credit line without being subject to the auto-liquidation protocol?”
SBF: “That could be true.”
Sassoon: “You don’t deny it?”
SBF: “I don’t deny it, no.”
His testimony is scheduled to continue after a lunch break at 1:45 p.m. ET.