FILE PHOTO: Former FTX Chief Executive Bankman-Fried at a courthouse in New YorkNEW YORK - In U.S. prosecutors' telling, Sam Bankman-Fried embezzled money from depositors in his FTX cryptocurrency exchange ever since he launched it in 2019, and the resulting shortfall led directly to its collapse as crypto prices swooned last year.
Bankman-Fried, who quit his job as a quantitative trader at Wall Street firm Jane Street to found crypto hedge fund Alameda Research in 2017, has pleaded not guilty. FTX survived a downturn in crypto prices that saw other major digital currency platforms fail earlier in 2022, with Bankman-Fried even bailing some of them out.
Bankman-Fried has acknowledged inadequate risk management, but denied stealing funds. He intended to tell Congress in a December hearing over FTX's collapse that he made a mistake and did not know how much FTX had lent Alameda due to a "quirk" in the company's internal controls, according to a written draft of his planned testimony published by Forbes and confirmed by Bankman-Fried as authentic. Bankman-Fried was arrested before he could testify.
Ellison, Bankman-Fried's former romantic partner, said in her plea hearing that she and Bankman-Fried agreed to hide the fact Alameda had lent billions of dollars to FTX executives for their personal use from the fund's own lenders. "She continually avoided talking about risk management - dodging my suggestions - until it was too late," he wrote.
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Source: CryptoAmb - 🏆 22. / 68 Read more »