The Blubber

FTX allowed Alameda to have a negative balance of up to $65 billion, prosecutors have said.

Bankman-Fried, who has entered a plea of not guilty to seven charges of fraud and conspiracy, maintains a unique perspective on the collapse of his business empire. Since his arrest in December of last year, SBF has consistently framed himself as a CEO who found himself overwhelmed. His lead defense attorney, Mark Cohen, conveyed on Wednesday that things were "moving quickly" in the unpredictable realm of crypto, and they were essentially "building the plane as they were flying it," resulting in some oversights.

The defense has yet to present its case in the trial, which may span up to six weeks, leaving uncertainty regarding whether Bankman-Fried will take the stand.

Gary Wang revealed that Alameda had a colossal $65 billion line of credit from FTX, a figure designed to be seemingly impenetrable. Alameda was notably the sole FTX customer permitted to maintain a negative balance.

One of the pivotal moments the prosecutors intend to address with Ellison is an audio recording of a meeting where Ellison informs Alameda employees that the fund borrowed funds from FTX customer accounts to repay lenders. According to court documents, when an employee inquires about the decision-maker, Ellison responds with uncertainty, stating, "Um … Sam, I guess."