Former Crypto Executive Testifies in Fraud Trial, Frustrating the Judge
Sam Bankman-Fried, the former crypto executive facing criminal fraud charges, took the witness stand in his own trial, offering testimony that seemed to frustrate U.S. District Judge Lewis A. Kaplan. Bankman-Fried’s testimony was described by the judge as “interesting” and “evasive.” The judge even expressed concerns that the witness may have difficulty countering criticism of being evasive.
During a hearing without the presence of jurors, Bankman-Fried spoke clearly and precisely under questioning from his defense attorney. He stated that the bulk of his decisions had been approved by FTX’s legal counsel. However, when faced with cross-examination from federal prosecutor Danielle Sassoon, Bankman-Fried responded with uncertainty, often stating that he did not remember or may have done certain things.
Legal experts have commented on Bankman-Fried’s decision to take the stand, stating that it is a “Hail Mary” move since he is losing the trial. Despite the risk, Bankman-Fried may be hoping to shake up the trial and sway the jury, as his top lieutenants have testified against him, claiming that he knowingly directed the fraud at the center of the case.
Prosecutors have accused Bankman-Fried of orchestrating one of the largest financial frauds in history. They allege that he used stolen customer funds from his crypto trading platform, FTX, for risky investments, political contributions, and personal expenses. Bankman-Fried faces several criminal counts, including fraud and money laundering, and could face a lengthy prison sentence if found guilty.
The judge’s ruling on whether jurors can hear Bankman-Fried’s testimony is expected on Friday morning. If allowed, Bankman-Fried will begin officially testifying before the jury. The defense anticipates that it will take approximately five hours to go through their questions for Bankman-Fried.
Bankman-Fried’s defense team plans to emphasize that their client acted in good faith and relied on the advice of lawyers for critical decisions. However, former federal prosecutors observing the case believe that Bankman-Fried will face difficulty convincing the jury to believe his word over the testimony of his former employees. The government has presented substantial evidence to support their witnesses, while the defense has struggled to challenge the prosecution’s case.
The trial continues, and with the possibility of a not-guilty verdict diminishing, Bankman-Fried has chosen to take the stand in a risky move to try and turn the tides in his favor.