SBF says withdrawal of FTX customers was part of ‘risk management’: Report

Sam Bankman-Fried (SBF), founder of cryptocurrency exchange FTX, said withdrawing customers' fiat deposits is part of “risk management” for the embattled crypto hedge fund Alameda Research.

During the former crypto executive's court testimony on October 31, New York's Southern District Attorney Daniel Sassoon asked SBF whether it was allowed to withdraw $8 billion of FTX customers' fiat money. “I thought it was bent on risk management,” he said. “As the CEO of Alameda, I was concerned about their portfolio. At FTX, I was paying attention but not as much as I should have been.”

According to the SBF, neither FTX nor Alameda have been fired for taking $8 billion in client funds for speculative trading during their tenures as CEOs. “I don't recall knowing anything about certain employees,” SBF replied to a question posed by Sassoon.

During the process, Bankman-Fried announced that the exchange, which is headquartered in the Bahamas, has a close relationship with the island nation's government. “You gave floor seats to the Prime Minister of the Bahamas at the Miami Heat Arena,” Sassoon asked. “I don't remember that,” replied SBF. “That's the message you're saying on the FTX courtroom with his wife,” Sassoon said.

Reportedly, SBF has spoken with Bahamian Prime Minister Philip Davis about paying off his country's debt. While the crypto executive denies it, Davis' son admits to helping him secure the job.

Related: Sam Bankman-Fried Test [Day 15] – Latest update: live coverage

Shortly before the exchange collapsed last November, FTX announced that Bahamian users would be fully terminated and would be processing their withdrawal requests. The FTX trial is ongoing and is expected to be completed before the end of next week.