Benzinga - Amid an intense cross-examination by Assistant U.S. Attorney Danielle Sassoon, FTX founder Sam Bankman-Fried, testified on the third day of his ongoing trial that he mocked regulators with derogatory language in private.
The embattled former billionaire also conceded Alameda Research was designed to withdraw billions of dollars of customer assets from FTX without any risk of being liquidated, Inner City Press reported.
This revelation comes just days before the highly anticipated Benzinga's Future of Digital Assets conference on Nov. 14, where regulatory scrutiny on crypto enterprises is expected to be a key discussion point.
Sassoon delved deep into Bankman-Fried's involvement with Alameda, questioning his assertions that FTX and Alameda operated as distinct entities.
Bankman-Fried acknowledged his deep involvement in Alameda's trading decisions and admitted to being part of chat groups where trading strategies were discussed.
A pivotal moment arose when Sassoon presented an email from March 2022, pushing Bankman-Fried on his previous claims about Alameda's trading practices.
The billionaire did not deny that Alameda had certain accounts with flags allowing them to hold negative balances or that they could potentially withdraw billions without the risk of liquidation.
When questioned further, Bankman-Fried conceded that he may have portrayed FTX as a "neutral piece of market infrastructure," even if he didn't recall saying it verbatim.
When asked if he denied Alameda Research could withdraw billions without the risk of being liquidated, Bankman-Fried said, "That might be right."
Prodded further, he said, "I don't deny it, no."
The atmosphere in the courtroom turned palpably tense when Sassoon cornered Bankman-Fried on his private mocking of regulators.
Also Read: Sam Bankman-Fried Says He Often Worked 22-23 Hours A Day At FTX
Asked if he said on Twitter (now X) he supported that regulation was contingent on protecting customers, Bankman-Fried said, "I don't remember."
Sassoon went on, "But in private you said, F*ck regulators, right?.
Bankman-Fried replied, "I said that once."
To which Sassoon further asked, "You said it was P.R."
The former FTX CEO conceded saying, "I said something like that."
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