BusinessFriday 10.27.23

FTX founder Sam Bankman-Fried testified today in his NY fraud trial that his biggest mistake was not having oversight.

Kelly O'Grady of Fox Business broke down former crypto king Sam Bankman-Fried’s trial. Bankman-Fried was the founder of FTX, a major cryptocurrency exchange that collapsed in 2022, costing billions of dollars and dragging the entire cryptocurrency industry down with it. Fried, who is being held responsible for the mismanaged exchange, is being tried for wire fraud, securities fraud, and money laundering.

From the courthouse in New York City, O’Grady reported that the defense is arguing that “being bad at your job isn't a crime.”

Sam Bankman-Fried testified on the stand and argued that FTX’s problems were caused by mistakes and inexperience, not malice. Running FTX, the defense team argued, “was like flying a plane while building it.” When asked by if FTX had a risk management team, Bankman-Fried replied “well, we sure should have, but no, we didn't.”

Bankman-Fried will soon be cross-examined by prosecutors and O’Grady expects him to be “nervous.”

Recount Wire