(New York) The former star of cryptocurrencies appeared in a bad position at the end of his hearing, which ended on Tuesday, with the prosecution attacking, as a finale, his extraordinary tolerance for risk.
All the witnesses called by the prosecutor and the defense having been heard, the time has come for the prosecution’s indictment and the pleadings, which will begin Wednesday morning in Manhattan federal court.
The defense of the former central figure of cryptocurrencies emerged in poor condition from these four weeks of hearing, his own testimony, in conclusion, not having produced the expected shock.
Tuesday, to finish her cross-examination, Danielle Sassoon, representative of Manhattan prosecutor Damian Williams, once again peppered “SBF” with closed questions in a flurry, leaving him almost no room for maneuver.
After insisting, Monday, on the gap between the numerous public declarations of the accused and the actual situation of his companies, she turned the spotlight on his risk management at the different stages of the saga which led to the implosion.
PHOTO EDUARDO MUNOZ, REUTERS ARCHIVES
Sam Bankman-Fried
“SBF” is on trial for having organized, without the knowledge of clients, the illegal use of funds deposited on its cryptocurrency exchange platform FTX, which went bankrupt in November 2022.
Up to $14 billion was siphoned off to fund Alameda Research’s often risky investments.
“You have never initiated measures to protect” the funds deposited by FTX clients, questioned the prosecutor, and thus prevent them from being used for other purposes. “I don’t remember giving any instructions” to this effect, replied the young thirty-year-old.
Mme Sassoon pressed the defendant to detail the arrangements made when he discovered, in the fall of 2022 according to him, that Alameda owed FTX some $8 billion, drawn from customer accounts.
“SBF” recalled asking Alameda executives for explanations, in response to which “I was told they were busy and that I should stop asking questions.”
A return that he was happy with, he admitted.
The ex-billionaire, whose fortune soared with FTX and Alameda, also admitted to having authorized a series of investments made thanks to funds from clients of the platform, in particular equity investments or for 35 million dollars real estate.
These investments were not “liquid” in nature, that is to say easily monetizable in the event of strong demand for withdrawals from FTX clients, as happened in November 2022.
“Were you prepared to maximize the potential to make profits even if it created the risk of bankruptcy? », asked the prosecutor.
“It depends on the context,” replied “SBF”.