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SBF Sheds Light on FTX Security Concerns in Ongoing Trial

1 min
Updated by Ciaran Lyons
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In Brief

  • Sam Bankman-Fried, FTX founder, testifies in fraud trial about communication platforms used at FTX.
  • SBF reveals on X (formerly Twitter) that FTX data was compromised due to a hack, raising security concerns.
  • Despite the hack, SBF assures there was never a direct breach to FTX, but third parties were affected.
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Disgraced FTX founder, Sam Bankman-Fried (SBF), has responded to a series of questions about security breaches in the ongoing fraud trial against him following the collapse of FTX.

SBF explains to the courtroom that Telegram, Slack and Signal were the most commonly used communication platforms for FTX.

SBF Acknowledges Privacy Breaches

According to a series of posts on X (formerly Twitter), SBF stated that FTX data became exposed following a security breach.

“We were headquartered in Hong Kong. There were some, uh, security concerns while we were there. Also, former employees might have data to sell to a competitor.”

SBF further explains that there was never a breach directly to FTX:

“Never a core breach. But third parties were hacked,” he noted.

Read more: Who Is John J. Ray III, FTX’s New CEO?

Judge Kaplan expressed uncertainty as to whether he will be sending the jurors home for the weekend or not.

“Tomorrow. I might send the jurors home. Or I might not,” Kaplan reportedly stated.

Continuing Accusations Haunt SBF in Fraud Trial

There have been several eye-opening allegations against SBF in the fraud trial which commenced at the beginning on October.

On October 10, BeInCrypto reported that Caroline Ellison, the former co-CEO of Alameda Research, claimed that SBF coerced her into engaging in criminal activities.

“Sam directed me to commit these crimes,” she stated.

Meanwhile, Ellison disclosed in her testimony that SBF’s aim was to prompt regulators to “crack down on Binance.”

This reportedly stirred frustration in Binance CEO Changpeng “CZ” Zhao, leading him to post a public tweet upon discovering.

“We won’t support people who lobby against other industry players behind their backs,” he stated.

Top crypto platforms in the US | March 2024

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Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.
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