Bankman-Fried Lawyers Are The New Blame Target Of Former FTX CEO In Fraud Trial

Key Points:

• FTX founder Sam Bankman-Fried defends himself in a fraud trial, denying theft accusations.
• The defense highlights the role of Bankman-Fried lawyers in key decisions.
• The trial is ongoing, with a potential conclusion by Tuesday.

Sam Bankman-Fried, the founder of the now-bankrupt cryptocurrency exchange FTX, testified in his fraud trial on Thursday, seeking to distance himself from responsibility for any wrongdoing.

Bankman-Fried Testifies: Denies Fraud Allegations in FTX Trial

According to Reuters, Bankman-Fried, who faces two counts of fraud and five counts of conspiracy, has pleaded not guilty to accusations of stealing billions of dollars from customers.

Taking the witness stand after the prosecution rested its case, Bankman-Fried’s testimony aligned with the defense’s argument that he acted in good faith while running FTX, which collapsed in November 2022 amid customer withdrawals. He often struggled to specify conversations with Bankman-Fried lawyers who approved his actions during cross-examination by prosecutors, leading to a “deposition-like” atmosphere, according to U.S. District Judge Lewis Kaplan.

Bankman-Fried Lawyers Involve in Key Decisions During Trial

Bankman-Fried lawyers were involved in shaping document-retention policies, establishing a deposit system with an Alameda bank account for customers, and crafting loans for FTX executives. Prosecutors claim that Bankman-Fried encouraged employees to use encrypted messaging platforms to hide their tracks and facilitated fund misappropriation.

The trial, marked by multiple overflow rooms and high-profile attendees, including author Michael Lewis, may conclude by Tuesday. Bankman-Fried’s decision to testify offers prosecutors a chance to cross-examine him on the claims made by former colleagues who testified against him.

The defense maintains that these colleagues tailored their testimonies to implicate Bankman-Fried in hopes of receiving lenient sentences. Despite admitting to mistakes in managing FTX, Bankman-Fried has consistently denied any intention to steal funds.

Coincu will continue to update the situation related to the trial, you can find out more information through this article.

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