• AutoTL;DRB
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    -111 months ago

    This is the best summary I could come up with:


    Yesterday, during an evidentiary hearing, Bankman-Fried was repeatedly scolded by Judge Lewis Kaplan for not answering prosecutor Danielle Sassoon’s questions on cross-examination.

    Bankman-Fried did not define what he expected the time period to be on this estimate, but arguably 20 percent was a much higher chance of success than FTX would enjoy once Alameda dipped into the customer deposits.

    As a result, at one point the risk engine got stuck in a catastrophic feedback loop that would have created losses in the “trillions of dollars,” Bankman-Fried testified.

    Bankman-Fried handed the company off to Caroline Ellison and Sam Trabucco, who immediately after being named co-CEO promptly drifted away to early retirement.

    Yeah, so it was a totally innocent thing where what actually happened was that Bankman-Fried thought it was appropriate that Alameda take the position as a backstop liquidity provider, that’s all.

    Remember that testimony Adam Yedidia gave about a conversation with Bankman-Fried in August 2022 about the enormous amount of money Alameda owed FTX?


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