TechFlow news — According to Bloomberg, during the trial, U.S. Assistant Prosecutor Danielle Sassoon questioned SBF about his relationship with Alameda. SBF admitted he owned 90% of Alameda and had been a billionaire for a period of time. Sassoon attempted to ask whether this meant Alameda was a subsidiary of FTX, but the defense objected. The prosecutor then asked if SBF had no involvement whatsoever in Alameda’s trading activities in 2022. He replied: “It depends on how you define ‘trading.’ I wouldn’t say I wasn’t involved in any way.”
SBF also acknowledged that certain crypto firms received preferential treatment on FTX. When asked by the prosecutor whether clients could use equity from external investments as collateral on the exchange, SBF said a company called Crypto Lotus was allowed to do so, which was linked to Three Arrows Capital (3AC).
SBF further told the jury that Alameda had a credit line of $65 billion on FTX, while the next highest client had a credit line of $150 million. When the prosecutor asked, “Does that mean Alameda’s credit line was over $64 billion more than any other client?” SBF responded, “Yes.” The judge then asked again, “From the early days of FTX, was Alameda permitted to exceed FTX’s normal borrowing limits?” SBF answered, “I’m not sure.”
In addition, when the prosecutor asked SBF, “Was it your decision to spend billions of dollars on venture investments in 2021 and 2022?” SBF responded, “I think tens of billions of dollars were my decisions.”
