Federal prosecutors in Manhattan say Sam Bankman-Fried stole billions of dollars from FTX clients to pay off the debts of his Alameda Research hedge fund, but he says he "didn't steal the money" and the exchange's crash is linked to a crash in cryptocurrency markets. writes Reuters.
Defense attorneys usually advise clients to remain silent until trial because prosecutors may use their comments against them in court. His trial is scheduled to begin on October 2, 2023. Bankman-Fried, in a blog published on Substack, chose to write: "I did not steal funds and I certainly did not hide billions."
In his post, Bankman-Fried did not address many of the other charges brought against him by federal prosecutors in Manhattan last month, namely that he misled investors and lenders about the financial terms of FTX and Alameda.
He wrote that Alameda was unable to hedge against the crash in the cryptocurrency markets, which eventually happened last year. "As Alameda became illiquid, so did FTX International, because Alameda opened a margin position on FTX," Bankman-Fried said.