FTX co-founder Sam Bankman-Fried admitted in a New York court that he was aware Alameda Research hadn't properly hedged its risk before both companies collapsed. Assistant US Attorney Danielle Sassoon used Bankman-Fried's past statements to undermine his attempts to distance himself from decisions at the hedge fund. Bankman-Fried faces prison on charges related to transferring FTX customer money into Alameda for investments and other expenses. He testified in his own defense to counter the testimony of former FTX officials who incriminated him.