Former FTX CEO Testifies in Fraud Trial: Addressing Bank Run Concerns and Asset Management Practices

The disgraced former CEO of the bankrupt crypto exchange FTX is testifying in his own fraud trial against the US government. Sam Bankman-Fried (SBF) recounts the day that Binance's Changpeng Zhao (CZ) tweeted about liquidating all of its FTX Token (FTT). SBF expresses concern about a potential bank run and discusses the actions taken by FTX to address the situation.

Concerns about a Bank Run

SBF explains that CZ's tweet about liquidating FTT raised concerns about a bank run, where depositors would withdraw their money due to fears of FTX's failure. SBF discusses the decision to send a tweet in response to CZ's announcement, but acknowledges that the damage was already done. The increased customer withdrawals on November 7th further intensified concerns about a liquidity crisis.

FTX's Asset Management

SBF clarifies that FTX did not invest customer assets and assures that the exchange had no holes in terms of assets. He emphasizes that FTX continued to process withdrawals and highlights the responsible management of customer assets.

Testifying in Court

SBF decided to testify in court after his colleagues provided damaging evidence against him. His testimony aims to rebut statements made by employees of FTX. The trial continues as SBF presents his side of the story.

In conclusion, the former CEO of the bankrupt crypto exchange FTX is testifying in his own fraud trial. He addresses concerns about a potential bank run and clarifies FTX's asset management practices. SBF's testimony aims to counter the damaging evidence presented by his colleagues. The trial continues as both sides present their arguments.