Sam Bankman-Fried (SBF), the founder of FTX Exchange and Alameda Research, made his debut as a witness during his criminal fraud trial on October 27. During his testimony, one of the key revelations was his admission that he had no prior knowledge of cryptocurrencies when he initiated Alameda Research in 2017.

The live coverage of SBF’s testimony, lasting approximately seven hours, was provided by CNN Business. It was disclosed that Sam had a limited understanding of cryptocurrency when he embarked on the journey to establish Alameda Research in 2017.

It’s worth mentioning that FTX was established a couple of years later, in 2019, with its primary objective originally set on developing a more user-friendly trading platform for potential sale to Binance. However, his intentions shifted as the customer base began to expand.

Risk Mitigation: SBF Expressed Concerns About Alameda’s Management Team Abilities

In a notable turn of events, Bankman-Fried penned a memorandum two months before Alameda Research faced a downturn, recommending the potential shutdown of its operations due to the perceived “substantial risks” to the company.

In his testimony, the founder recollected his concerns about the absence of hedging strategies, particularly those related to Alameda’s CEO, Caroline Ellison, in the event of a market downturn. Caroline had previously characterized Sam’s preoccupation with hedging as an undue concern over something inconsequential.

In an intriguing twist, when questioned about his personal approach, the FTX founder described himself as “somewhat preoccupied and inclined toward leisure.”

SBF is scheduled to appear before the jury once more on October 30 to extend his testimony.