Bankman-Fried Denies Fraud But Admits 'Large Mistakes' at FTX as Bombshell Testimony Claims He Illegally Diverted Billions

Sam Bankman-Fried took the stand and denied committing fraud or taking customer funds when questioned by his defense lawyer. He admitted to making "large mistakes" in failing to have proper risk management.

Prosecutors have portrayed Bankman-Fried as orchestrating a massive $10 billion fraud at FTX, while his lawyers describe him as an overwhelmed "math nerd." His testimony will let jurors decide which to believe.

Caroline Ellison, former CEO of Alameda Research, gave bombshell testimony alleging Bankman-Fried directed her to illegally transfer $10 billion from FTX to Alameda.

Ellison said Bankman-Fried used customer funds to plug losses at Alameda, make speculative investments, and donate to politicians. Her testimony indicates what he may try to rebut.

Bankman-Fried chose to testify despite risks of facing intense cross-examination from prosecutors and having to explain Ellison's accusations. His testimony will be a pivotal moment.