SBF Acknowledges Mistakes, But Vigorously Denies Any Fraudulent Activity

Following the mock cross-examination conducted by the prosecution on Thursday, Bankman-Fried returned to the witness stand today to testify in his criminal fraud trial. While he admitted to making "a number of mistakes," the crypto mogul, founder of the now-defunct crypto derivatives exchange FTX and crypto hedge fund Alameda Research, denied any allegations of fraud.

Dressed in a gray suit, Bankman-Fried shared in his initial statements that he had "knew nothing" about cryptocurrency before starting the crypto hedge fund Alameda Research. He confessed, "I had absolutely no idea how they worked...I just knew they were things you could trade." Prior to founding Alameda, he observed "a ton of excitement and demand" but minimal infrastructure for large trading firms.

The 31-year-old, who was once a crypto billionaire, stated that when he co-founded FTX, they "thought that we might be able to build the best product on the market" and "move the ecosystem forward." However, he acknowledged that "It turned out basically the opposite of that."

When lead defense attorney Mark Cohen questioned him about any instances of fraud, Bankman-Fried emphatically replied, "No, I did not."

Cohen then asked if he had made mistakes, to which the crypto mogul admitted, "I made a number of mistakes."

During his testimony, Bankman-Fried, also known as SBF in the crypto world, addressed his ex-girlfriend Caroline Ellison, the former CEO of Alameda Research. He explained that he had to step down as CEO but remained involved in ventures. He delegated the role to Caroline Ellison and Sam Trabucco.

While he described Ellison and Trabucco as "good people," he criticized his ex-girlfriend for being "good in research" but lacking focus on risk management. He noted, "They were capable people, a good team. They were the best that I had. Caroline was a good manager, empathetic. She was not a software developer. She was good at doing research but had not focused on risk management."

Ellison, the prosecution's star witness, testified during the second week of Bankman-Fried's criminal fraud trial. According to former federal prosecutor Sarah Paul, her testimony was "extremely strong" and "devastating," and combined with other testimonies, it would be challenging for the defense to overcome.

In her emotional testimony, Ellison accused her former boyfriend of masterminding a scheme to steal billions of dollars from customers, investors, and lenders.