SBF: The collapse of FTX was due to Caroline Ellison's failure to adequately hedge against the risks of a market downturn

ChainCatcher news, according to a report by Reuters, FTX founder Sam Bankman-Fried (SBF) testified on Monday that the collapse of the cryptocurrency exchange was due to the failure of Caroline Ellison, head of its trading firm Alameda Research, to adequately hedge against the market downturn. He stated that he had asked Caroline Ellison to trade to offset the risks from the decline in cryptocurrency prices that began in the mid-term.

In response to questions from the defense attorney, SBF said, "Ellison agreed that Alameda should hedge, and she also said maybe it shouldn't make some risky investments."

SBF has pleaded not guilty to two counts of fraud and five counts of conspiracy. Prosecutors claim he looted billions of dollars from FTX customers to support Alameda, engage in speculative investments, and donate to political campaigns in the United States. If convicted, he could face decades in prison.