On Thursday, in a preliminary session of his fraud trial, Sam Bankman-Fried practiced his testimony. Judge Lewis A. Kaplan dismissed the jury briefly to evaluate and decide upon the content Bankman-Fried would be permitted to share.
Quick Read
- Sam Bankman-Fried test-run his testimony during a fraud trial on Thursday.
- This was done outside the presence of the jury to determine what he’ll be allowed to tell them.
- He plans to testify on Friday about his perspective on the rise and fall of his multibillion-dollar cryptocurrency business.
- The FTX founder’s empire collapsed, causing massive losses, which are blamed on his excessive spending on investments, donations, and an opulent lifestyle.
- Judge Lewis A. Kaplan altered the schedule, deciding to hear Bankman-Fried’s snippets of testimony before allowing him to testify in front of the jury.
- Judge Kaplan had previously mentioned conducting a hearing for this on Friday.
- Kaplan informed the jurors that they would likely receive the case early next week.
- Prosecutors have made their case since early October using witnesses and various exhibits, including financial records.
- Upon the prosecutors resting their case on Thursday, defense lawyers requested Bankman-Fried’s acquittal due to insufficient evidence, but the judge denied this.
- Bankman-Fried, a 31-year-old Californian entrepreneur, denies charges of conspiring to divert billions from clients and investors for risky ventures, luxury housing, publicity campaigns, and large donations.
- Throughout the three-week trial, Bankman-Fried remained silent while key members of his executive team testified against him. These testimonies came after their individual plea deals with the government.
- Witnesses claim Bankman-Fried directed them to use billions from FTX customers’ accounts, channeled through Alameda Research, a hedge fund he founded in 2017.
- He established FTX, a cryptocurrency exchange, two years after starting Alameda Research.
- Bankman-Fried was apprehended in the Bahamas in December and later extradited to the US, following the collapse of his businesses.
- Initially released on a $250 million bond, he was confined to his parents’ Palo Alto home. However, his bail was revoked in August after attempts to influence potential witnesses, leading to his incarceration.
- Among those testifying against him was Caroline Ellison, his ex-girlfriend and former CEO of Alameda.
- Ellison expressed relief at not having to lie anymore after the collapse of the businesses and accused Bankman-Fried of corrupting her moral values.
- Ellison confessed to falsifying financial records, trying to conceal that Alameda borrowed roughly $10 billion from FTX clients by June 2022. This issue came to light when clients tried to withdraw their money, fearing its safety.
The Associated Press has the story:
FTX founder Sam Bankman-Fried testifies outside jury’s presence
Newslooks- NEW YORK (AP)
Bankman-Fried is set to take the stand on Friday to share his side of the story about the rise and fall of his cryptocurrency business. This collapse resulted in significant financial losses, which the prosecution attributes to his excessive spending on various ventures and luxury.
Though it appeared Bankman-Fried was poised to testify post-lunch on Thursday, Judge Kaplan altered the schedule. He wanted to finalize the guidelines of the testimony first, despite initially indicating such decisions would be made on Friday.
Sending jurors home, Judge Kaplan remarked that the trial is nearing its conclusion, and they might deliberate the case by early next week.
The prosecution, since October, has built their case using witness testimonies and numerous exhibits, including financial statements. Upon the conclusion of the prosecution’s arguments on Thursday, the defense appealed for Bankman-Fried’s acquittal, citing insufficient evidence. This request was denied by Judge Kaplan.
The entrepreneur from California has denied allegations of conspiracy, which involve misdirecting billions from his clientele for personal and high-risk ventures. During the three-week-long trial, several of Bankman-Fried’s close associates have testified against him following their own plea deals.
These executives have stated that under Bankman-Fried’s direction, vast sums were moved from FTX client accounts to Alameda Research, his hedge fund established in 2017.
Following the collapse of his businesses, Bankman-Fried was detained in the Bahamas last December and subsequently extradited to the US. Initially released on a $250 million bond, he was confined to his family home in Palo Alto, California. However, his bail was rescinded in August by Judge Kaplan due to alleged witness tampering.
Among those testifying against him was Caroline Ellison, Bankman-Fried’s ex-girlfriend and previous CEO of Alameda. Ellison expressed her relief over the businesses’ end, holding Bankman-Fried accountable for swaying her ethical judgments. She also confessed to manipulating financial documents to conceal Alameda’s significant borrowings from FTX clients. This financial inconsistency became evident when a surge of customers tried to recover their investments upon realizing their funds were at risk.
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