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SBF Testimony: Misappropriation of FTX Funds is Part of Risk Management, Deep Ties with Bahamian Officials

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SBF Testimony: Misappropriation of FTX Funds is Part of Risk Management, Deep Ties with Bahamian Officials

FTX founder SBF apparently tried to frame the misappropriation of customer funds as a result of poor risk management rather than fraud. His lawyer, Mark Cohen, still argued for a not guilty verdict today, but was mercilessly rejected by the judge.

SBF Has Deep Ties with Bahamian Officials, Hosted at NBA Courtside

Federal prosecutors questioned SBF on various matters:

  • Did you discuss the repayment of Bahamian national debt with the Prime Minister of the Bahamas?

  • Have you boasted that FTX executive Ryan Salame is essentially a member of the Bahamian government?

  • Did you provide the Bahamian Prime Minister with courtside seats at an NBA Miami Heat game?

SBF mostly responded with "I don't recall," but the prosecutor directly revealed texts instructing to provide the Bahamian Prime Minister with courtside seats at an NBA game.

SBF Previously Dined with Former U.S. President

SBF only admitted to:

  • Having good relations with some Bahamian officials

  • Providing advice on an NFT project to the Bahamian Prime Minister's son

  • Dining with former U.S. President Bill Clinton

  • Allowing Bahamian officials to withdraw funds before bankruptcy

SBF: Using FTX Deposits is Part of Risk Management

The prosecutor raised questions about SBF misappropriating FTX client deposits. Do you think it's acceptable to use client fiat deposits?

SBF stated:

I believe it's part of risk management, as part of Alameda, I care deeply about their investment portfolio, I keep an eye on it, but not to the extent it should be.

Presiding Judge: Entering Closing Procedures

SBF case presiding Judge Lewis Kaplan stated that SBF's testimony and cross-examination phase has concluded, and the closing procedures will begin tonight.

SBF's attorney, Mark Cohen, once again requested a not guilty verdict, which was once again denied by the judge.