Last updated on November 2, 2023
During the trial of Sam Bankman-Fried, co-founder of the now-defunct FTX crypto exchange, surprising revelations have come to light regarding his understanding of cryptocurrency. Bankman-Fried admitted on the stand that he knew “basically nothing” about cryptocurrency before launching FTX and its affiliated hedge fund, Alameda Research. He confessed that he only knew that they were things that could be traded. Bankman-Fried also acknowledged that when he teamed up with co-founder Gary Wang, they had no idea how to attract customers. This revelation raises questions about the competence and knowledge of the individuals behind the exchange.
The collapse of FTX has also been a topic of discussion during the trial. US Attorney Mark Cohen questioned Bankman-Fried about the exchange’s operations and business decisions. It was suggested that there was nothing particularly wrong with the operations or decisions, highlighting the terms of service that allowed a client’s balance to be used to cover others’ losses in certain situations. Bankman-Fried also discussed FTT, the cryptocurrency created by FTX, and its role in the collapse. Customers rushed to withdraw funds after it was revealed that Alameda’s loans heavily relied on FTT. Bankman-Fried attempted to portray FTT as beneficial for FTX users, providing account benefits if held. However, the reliance on FTT and its impact on the collapse raises concerns about the stability and sustainability of the exchange.
#SamBankmanFried #FTX #cryptoexchange #cryptocurrency #AlamedaResearch #FTT #trial #businessdecisions #cryptocollapse
Image: https://weeklyfinancenews.online/wp-content/uploads/2023/08/bitcoin-5.jpeg
Comments are closed.