SBF Testimony: Acknowledges Alameda's Privileges, Many Market Makers Have Credit Lines on FTX

FTX founder SBF appeared in court again, denying many of the accusations, but under continued questioning by the prosecution, SBF seemed to gradually falter, giving shorter answers and no longer looking at the jury when responding.

The following content is based on Bloomberg's third-party account "SBF Says He Backed a ‘Few Billion’ in Venture Spending"

Alameda in Serious Debt Due to Caroline Ellison's Failure to Hedge

SBF stated that he had discussed the hedging issue with Caroline from June to September 2022, saying:

I told Caroline that I was very concerned about Alameda, as its net assets had dropped from $40 billion in the previous year to $10 billion and still had not been properly hedged. She began to cry and felt that the company should not have taken on so much venture capital, then she offered her resignation.

Denial of Falsifying Alameda's Debt on the Books

SBF mentioned that when Alameda's debt had exceeded $10 billion, he found an account with a Korean name in the FTX account, with a debt of around $8 billion.

According to the CFTC's lawsuit against FTX, the CFTC pointed out that the Korean account was allocated by SBF to senior executives, later referred to as "our Korean friend's account" and/or "strange Korean account."

This made it no longer visible on the books at FTX that Alameda had $8 billion in debt.

Many Market Makers, Including Alameda, Have Credit Lines at FTX

Under questioning from prosecutor Danielle Sassoon, SBF admitted that Alameda's credit line was $65 billion, more than $64 billion higher than other market makers.

Autism Capital: SBF instructed FTX executives to allocate Alameda's approximately $8 billion debt to an account named "Korean friend" in the system

SBF: Successful Financing Trip in the Middle East, but Uneasy with Binance's Territory

SBF believed the financing trip in the Middle East was successful, with investors showing great interest and plans for further due diligence.

However, given the longstanding cool relationship between Binance and FTX, he mentioned:

If I go to the Middle East, I would feel uneasy stepping on Binance's turf.

Does SBF Work 22 Hours a Day?

When asked about his daily and weekly working hours, SBF stated that he works around 22 to 23 hours a day.

SBF Still Doesn't Remember Many Things

SBF has difficulty remembering and confirming many things, including claims of not being involved in Alameda's investments and uncertainties about specific wording in various interviews.

When asked if he emphasized in Congress that FTX is a safe exchange, he confirmed that he did say so but was uncertain about the exact wording.

In fact, he did mention 22 times in Congress that FTX is a safe exchange, and referenced it.

Prosecution Breaks Down SBF's Contradictory Testimonies

According to Bloomberg's observations, SBF appeared confident with his defense attorney Mark Cohen during the main questioning, looking at the jury as if directly engaging with them.

However, this changed during prosecutor Danielle Sassoon's questioning, with SBF's responses becoming shorter and his body language stiff, appearing to converse directly with Danielle Sassoon and no longer looking at the jury.

SBF will continue to testify in court this week, with closing arguments possibly scheduled for Thursday, and the jury may deliberate on the case on Friday.