(qlmbusinessnews.com Fri, 3rd Nov, 2023) London, UK —
Sam Bankman-Fried, the former billionaire at the center of a fraud trial in New York, struggled to provide a coherent account of the management of his now-bankrupt crypto exchange, FTX, as the trial approached its conclusion on Tuesday.
Bankman-Fried is accused of stealing billions from FTX customers, lying to investors and lenders, and is currently facing a trial. The prosecution in New York has finished questioning him. He has denied all the charges against him.
However, he is facing the difficult task of convincing a jury to disregard the testimony of his former top deputies, including his ex-girlfriend Caroline Ellison, who have already pleaded guilty and were testifying against him to reduce their sentences.
Prosecutors allege that Bankman-Fried was responsible for decisions that allowed Alameda Research, the crypto trading firm he owned, to access billions of dollars deposited at FTX. He is accused of using this money to repay lenders, purchase property, make investments, and fund political donations. Prosecutors have presented text messages, spreadsheets, and tweets to support their claims.
During his testimony, which began last Thursday, Bankman-Fried expressed a mix of defiance, regret, and frustration at comments and actions he felt were being taken out of context. He told the court that he believed it was “permissible” for Alameda to use FTX customer funds but claimed he was not aware that the company had actually done so until October 2022.
He acknowledged his lack of oversight, saying, “I deeply regret not taking a deeper look into it.” When questioned about why he hadn't tried to understand the situation between Alameda and FTX by June 2022, Bankman-Fried said he had “trusted” his former friends and deputies to handle it.
Bankman-Fried has maintained that he was less involved in decision-making than his friends had suggested. He claimed that he couldn't recall going over spreadsheets that had been presented to him. He also stated that he did not prioritize assigning blame and, as a leader, didn't try to fire anyone.
Sam Bankman-Fried finished his testimony around mid-day, and the jury was dismissed while the judge conducted a hearing with lawyers from both sides on the instructions to be given to the jury.
Bankman-Fried faces seven federal charges, including wire fraud, securities fraud, and money laundering. If convicted, he could face a life sentence in prison. His defense team argues that he was following reasonable business practices as his companies grew and did not intend to commit fraud.
Closing arguments in the trial are expected to begin on Wednesday.
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