SBF the founder of the former cryptocurrency exchange FTX, recently defended his actions during a court testimony. He argued that spending $8 billion of FTX clients’ fiat deposits was part of “risk management.” Moreover, he highlighted the challenges he faced balancing his roles.
Bankman-Fried made it clear that no employees were terminated in relation to the alleged use of $8 billion for speculative trading. When pressed by prosecutor Danielle Sassoon on specific employee involvement, Bankman-Fried simply stated he wasn’t aware of particular individuals linked to the issue.
During the trial, the close relationship between FTX and the Bahamian government became evident. Sassoon unveiled messages hinting at Bankman-Fried offering floor side seats at the Miami Heat Arena to the Bahamas prime minister. Although SBF couldn’t recall the incident, the message indicated the prime minister enjoyed FTX’s courtside seats with his spouse.
Furthermore, it was suggested that Bankman-Fried had discussions with Bahamian Prime Minister, Philip Davis, regarding settling the nation’s debt. However, while the FTX founder refutes this claim, he does acknowledge assisting Davis’ son in obtaining employment.
Significantly, just before FTS’s unfortunate downfall, a commitment was made to prioritize Bahamian users. FTX assured that these users’ withdrawal requests would be processed promptly and their interests safeguarded.
Earlier this month, Bankman-Fried was questioned about political donations linked to the crypto exchange. He firmly denied holding any conversations with Nishad Singh or Ryan Salame, former FTX personnel, regarding contributions to U.S. politicians.
However, he did acknowledge that the contributions bearing his name were “loans from Alameda Research.” Consequently, these were strategic measures to potentially sway the U.S. government’s perspective on cryptocurrency regulations. Some donations were clearly in support of FTX’s lobbying efforts, but not the majority.