During a testimony to the jury in his fraud trial, Sam Bankman-Fried, the former boss of the cryptocurrency business FTX, admitted that his company did hurt people and that he made numerous mistakes. Bankman-Fried acknowledged the impact of FTX's collapse, stating, "A lot of people got hurt, customers, employees, and the company ended up in bankruptcy."
FTX Trading Ltd., before its collapse, was one of the world's largest cryptocurrency trading companies, valued at around $40 billion. The company allowed the trading of its token, FTT, alongside popular cryptocurrencies such as Bitcoin, Ethereum, Ripple, and Tether. Bankman-Fried, along with co-founder Gary Wang, established FTX in 2019. However, on November 11, 2022, FTX announced Bankman-Fried's resignation, followed shortly by the company filing for bankruptcy.
During the trial, prosecutors accused Bankman-Fried of using FTX customer funds for his crypto-focused hedge fund, Alameda Research. They also alleged that he used customer funds to donate over $100 million to US political campaigns. Additionally, Bankman-Fried faced accusations of lying to investors and lenders and repeatedly stealing funds from customers. However, he denied all allegations of lying or fraud.
As a BBC article supplements, Mr. Sam Bankman-Fried said in the opening questions of his fraud trial, "We thought we might be able to build the best product on the market...It turned out basically the opposite of that". Despite the accusations against him, Bankman-Fried denied that he had any mal-intentions or lying actions, simply saying, "A lot of people got hurt, customers, employees, and the company ended up in bankruptcy." Also, he told the court that he had indeed made "a number of small mistakes and a number of larger mistakes".
Bankman-Fried's testimony sheds light on the collapse of FTX and the consequences it had on customers, employees, and the company itself. The trial will continue as the jury evaluates the evidence presented and determines the outcome of the case.