Sam Bankman-Fried’s lawyers have revealed the details of his planned testimony if he takes the witness stand at his FTX fraud trial. In a six-page letter to Judge Lewis Kaplan, Bankman-Fried’s legal team outlined three key areas that he would address in his testimony.
One of the areas that Bankman-Fried would discuss is his reliance on FTX’s former legal team, stating that he allowed some actions based on their advice, which later led to the bankruptcy of the cryptocurrency exchange. The defense also argued that Bankman-Fried’s understanding of common industry practices would be relevant to his testimony. They claimed that his actions were in line with these practices and that he acted in good faith.
Bankman-Fried is facing seven criminal counts, including wire fraud, securities fraud, and money laundering. If convicted, he could face over 100 years in prison. His legal team has maintained his innocence throughout the case.
While Bankman-Fried’s defense initially stated that he would testify, the letter to Judge Kaplan suggests that he might reconsider if the defense’s requests are rejected. The defense argued that Bankman-Fried’s understanding of the involvement of counsel in certain matters is directly relevant to his state of mind and good faith at the time.
The defense cited specific examples where Bankman-Fried relied on the guidance of FTX lawyers, such as the use of encrypted messaging app Signal and the handling of customer deposits. They claimed that Bankman-Fried believed these actions were proper based on the advice of counsel.
The trial has also highlighted the use of omnibus wallets by FTX, which involve the commingling of customer and company assets. The defense argued that Bankman-Fried’s knowledge of industry practices regarding the use of omnibus wallets is relevant to his good faith belief in his actions.
Bankman-Fried’s testimony, if he takes the stand, could provide insight into his understanding of industry practices and his reliance on legal counsel. Whether or not he will testify remains to be seen as the trial continues.