Benzinga - Sam Bankman-Fried, the face behind crypto giants FTX and Alameda Research, acknowledged his awareness of the potential risks tied to the controversial decision to use the former's funds to repay the latter's debts.
This concession came during the intense cross-examination by Assistant U.S. Attorney Danielle Sassoon on the third day of Bankman-Fried's testimony.
Throughout the session, Sassoon delved deep into Bankman-Fried's professional decisions, his relationship with Alameda Research, and the internal workings of FTX.
At one point, Sassoon highlighted a pivotal moment when Bankman-Fried instructed Alameda Research's Caroline Ellison to repay lenders, even when he knew it could jeopardize the financial stability of the FTX exchange.
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Bankman-Fried defended his decision by asserting he hadn't thought "the odds of that were significant" at the time. However, when pressed further by Sassoon about understanding the inherent risks, especially when a potential "hole" in finances was concerned, Bankman-Fried admitted, it "could become a hole."
The courtroom drama also touched upon other aspects of Bankman-Fried's operations.
This included his interactions with Ellison, discussions about venture investments, travel to the Middle East for fundraising and considering the transition from Alameda to Modulo, a new venture.
Bankman-Fried's responses varied from clear acknowledgments to instances where he couldn't recall specific details.
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