Former FTX CEO Sam Bankman-Fried openly acknowledged the adverse consequences of the collapse of the cryptocurrency exchange he co-founded during his testimony at his fraud trial. Facing allegations of deceiving investors, lenders, and misappropriating customer funds, Bankman-Fried admitted that “a lot of people got hurt” due to the exchange’s downfall.
In his testimony before the Manhattan federal court, the 31-year-old former entrepreneur conceded that he had made numerous mistakes during his tenure at FTX. He expressed regret for these errors, both small and substantial, which ultimately led to the exchange’s bankruptcy.
During the trial, Bankman-Fried emphasized that his intentions had always been to build the best possible product in the cryptocurrency market. However, the outcome turned out to be quite the opposite, with many individuals, including customers and employees, suffering harm as a result.
One of the critical errors he acknowledged was the absence of a dedicated risk management team, which, in hindsight, he deemed a significant oversight. Despite the challenges and harm caused, Bankman-Fried firmly denied engaging in fraudulent activities or misappropriating customer funds. He maintained that his actions were driven by good faith and a genuine desire to create a successful cryptocurrency exchange.
The trial continues as the court examines the evidence and testimonies in this high-profile case against the former “Crypto King” Sam Bankman-Fried.