Key Takeaways:
- Sam Bankman-Fried will testify in a criminal trial, facing wire fraud allegations.
- The defense expects to call two other witnesses.
- Special verdict possibility considered; trial resumes on Oct. 26.
LUCKNOW (CoinChapter.com) — According to attorney Mark Cohen, Sam Bankman-Fried, the former CEO of FTX, will take the witness stand as part of his defense in a criminal fraud case.
In a telephone conference on Oct. 25 involving SBF’s legal team, prosecutors, and Judge Lewis Kaplan, Cohen revealed that following the prosecution’s conclusion of their case on October 26, they planned to call three witnesses, including Bankman-Fried himself.
By testifying, Bankman-Fried, who has pleaded not guilty to charges of fraud and conspiracy, will have the opportunity to convey to the jurors that although he made mistakes while managing FTX, he never intended to steal customers’ funds.
In a six-page letter to Judge Lewis Kaplan, Bankman-Fried’s legal team, he outlined three crucial points to present in his testimony.
One of these points involves his dependency on FTX’s former legal team while making decisions. This ultimately contributed to the collapse and bankruptcy of the cryptocurrency exchange.
Cohen provided precise instances in which, under the counsel of FTX legal advisors, Bankman-Fried implemented a policy that, according to prosecutors, demonstrates his involvement in criminal activities.
Witnesses Lined Up as SBF Trial Enters Critical Phase
Cohen indicated that the defense doesn’t anticipate needing more than three days to question the three potential witnesses. These witnesses include an attorney based in the Bahamas and Joseph Pimbley from the litigation consulting firm PF2 Securities.
Judge Kaplan suggested that the defense’s case might take only about an hour, not including Bankman-Fried’s testimony.
The US government is expected to conclude its case against SBF on the morning of Oct. 26. The defense attorneys will likely wrap up the following day. Prosecutors expressed uncertainty about the need for rebuttal witnesses, depending on Bankman-Fried’s testimony. Closing arguments could potentially take place before October 31.
Assistant U.S. Attorney Nicolas Roos said, “The government has a single substantive wire fraud count related to customers, and the theory is that the defendant [SBF] made false representations and was in a trust relationship with depositors and took money.”
“I think there is certainly an element to which these are very intertwined to the extent that the false representations created an impression of trust and confidence amongst the victims of the crime,” He added further.
Uncertain Impact of Bankman-Fried’s Testimony
Bankman-Fried’s potential testimony follows admissions of guilt from former FTX and Alameda executives. These individuals, including Caroline Ellison, Gary Wang, and Nishad Singh, confessed to committing crimes as per SBF’s direction.
The criminal case alleges that Bankman-Fried was responsible for Alameda’s use of FTX funds from customers without their knowledge.
According to prosecutors, Bankman-Fried employed those funds to support Alameda and engage in speculative investments. They also blamed that he donated over $100 million to U.S. political candidates and campaigns.
It remains uncertain how Bankman-Fried’s testimony will influence the narrative established by previous witnesses. The trial, which went on hiatus on October 19, is set to resume on October 26.
Bankman-Fried is facing seven criminal charges, including wire fraud, securities fraud, and money laundering. A conviction in his trial at the federal court could potentially result in almost a 100-year prison sentence.
