SBF's second-day testimony: Entered SOL at $0.2, believes funds came from Alameda profits and loans.

SBF appeared in court for the second consecutive day, with the jury present on the second day. SBF pleaded not guilty to all charges, with former legal advisors and executives continuing to be his scapegoats.

Looking back on SBF's first testimony, attempting to shift blame to former legal advisors, his testimony mainly consisted of "I don't remember."

0.2 USD Massive Entry into SOL

According to CoinDesk, SBF stated that he bought Solana SOL at a price of 0.2 USD very early on.

He mentioned after consulting with his lawyer:

I believe these funds came from Alameda's profits and third-party loans.

Note: SOL has been trading above 0.2 USD since July 2020. Below is the well-known tweet by SBF calling for SOL.

I'll buy as much SOL has you have, right now, at $3.

Sell me all you want.

Then go fuck off.

— SBF (@SBF_FTX) January 9, 2021

SBF: My Mistake Lies in Poor Risk Management

According to The Block, SBF firmly denies deceiving users. He once thought FTX would become the best startup product in the crypto industry, but the outcome was the opposite, causing harm to users and employees. He stated:

I made many big and small mistakes, one of which was FTX lacking a dedicated risk management team and supervision.

Was FTX Established to Sell to Binance?

SBF mentioned that FTX's initial plan was to become a cryptocurrency derivatives exchange and sell to existing spot exchanges, with Binance being the main target. However, Binance eventually established its own derivatives exchange.

Unaware that Alameda Would Not Be Liquidated

SBF explained that incorrect liquidation could lead to the disappearance of Alameda's positions, resulting in users having no trading counterpart. Alameda is FTX's main market maker, so this would have catastrophic consequences for users.

Therefore, SBF requested CTO Gary Wang and Director of Engineering Nishad Singh to address this issue, but SBF was unaware of the specific actions taken by the two afterwards.

Previously, Gary Wang testified in court that he followed SBF's instructions:

Former FTX CTO Testifies: SBF Conspired with Core Team to Defraud, Alameda Can Withdraw Infinitely from FTX

Uncertain if Alameda Can Borrow Infinitely from FTX

SBF stated that running both FTX and Alameda simultaneously left him overwhelmed and admitted involvement in Alameda's venture capital and hedge trading business.

However, he emphasized that he was unaware that Alameda could freely borrow funds from FTX users:

At that time, I wasn't entirely sure what was happening.

Presiding Judge Lewis Kaplan had anticipated that the trial would conclude next week, and the prosecutor will question SBF in the presence of the jury next week, continuing to monitor the situation.