FTX: 'Crypto King' admits people got hurt as speaks out in trial

Former crypto boss Sam Bankman-Fried has testified to a jury at his fraud trial, saying "a lot of people got hurt" when the FTX exchange he founded collapsed.

The former entrepreneur said he had made many mistakes when running the cryptocurrency exchange.

The 31-year-old is accused of lying to investors and lenders and stealing money from customers.

He has denied those charges, instead arguing that he acted in good faith.

"We thought we might be able to build the best product on the market," he told his attorneys in his opening questioning. "It turned out basically the opposite of that".

"A lot of people got hurt, customers, employees, and the company ended up in bankruptcy."

Mr Bankman-Fried started testifying on Thursday in an unusual hearing after the jury had been sent home.

US District Judge Lewis Kaplan asked him to preview his testimony about the involvement of lawyers in key decisions at the heart of the case so he could decide whether it was admissible as evidence.

Mr Bankman-Fried has argued that he acted on legal advice.

But prosecutors have accused him of using FTX customer funds to prop up his crypto-focused hedge fund, Alameda Research, make speculative venture investments, and donate more than $10m to US political campaigns. He also faces charges of trying to cheat Alameda's lenders and FTX investors.

On Friday Judge Kaplan ruled that Mr Bankman-Fried would not be allowed to present testimony about the work lawyers did on various loans made to Mr Bankman-Fried from Alameda and other policies.

Based on what he heard on Thursday the judge said the evidence "would be confusing and highly prejudicial in implying that the lawyers with full knowledge of the facts blessed what the defendant has done".