Sam Bankman-Fried took the stand in his criminal fraud trial on Friday, denying that he stole billions from FTX customers but admitting to making big mistakes in managing the now-bankrupt cryptocurrency exchange.
Bankman-Fried told the jury he did not commit fraud or take customer funds, rejecting the core allegations from prosecutors. However, the FTX founder acknowledged failing to have proper risk management and oversight, which he called his biggest failure.
“A lot of people got hurt. I made a number of small mistakes and a number of big mistakes,” Bankman-Fried testified.
The prosecution alleges Bankman-Fried funneled FTX customer deposits to prop up his hedge fund Alameda Research. But Bankman-Fried claimed he believed Alameda was allowed to borrow funds through FTX policies drafted with the help of lawyers.
Bankman-Fried also suggested he delegated many details to subordinates and was unaware of certain actions like Alameda’s unlimited credit line. His testimony aimed to shift blame for the exchange’s collapse to executives like Caroline Ellison.
The high-stakes fraud trial could determine how much jail time Bankman-Fried faces for FTX’s failure, which wiped out billions in customer funds. His testimony attempted to sway the jury before the prosecution cross-examined him.
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