Ex-FTX CEO Sam Bankman-Fried Testifies Over Alleged Misuse of Crypto Exchange Funds
Summary:
Ex-FTX CEO Sam “SBF” Bankman-Fried has given testimony in a New York courtroom over the alleged misuse of crypto exchange funds via Alameda Research. The U.S. prosecution has centered on customer funds being invested without users' awareness. SBF has denied all charges in the ongoing criminal case but is anticipated to face five more in another trial due in March 2024. The jury is expected to decide early next week. The story continues to develop.
In a New York legal setting, Sam “SBF” Bankman-Fried, ex-CEO of FTX, gave testimony without a jury of 12 individuals. Defense lawyer Mark Cohen scrutinized the ex-chief's use of the Signal chatting platform, and his practices in retaining communications at the cryptocurrency exchange on October 26th, as per courtroom reports. He allegedly adhered to corporate policies regarding records, and any media set to self-erase were not decision-making channels. The reason behind disabling the auto-delete feature was regulatory advice, according to Bankman-Fried.
The attention of Cohen then pivoted to North Dimension, a supposed obscure organization implicated in the washing of clients’ crypto exchange funds via Alameda Research. As per SBF, ex-chief regulatory officer, Dan Friedberg delivered him the papers of this establishment set-up and were signed unquestionably. According to Bankman-Fried, the utilization of Alameda for FTX deposit transfer was lawful, a belief he held while being CEO of both entities. At the time of North Dimensions' creation, FTX lacked a bank account.
The focus of the federal prosecution's case against SBF is on the charges that the ex FTX chief exploited exchange funds to make investments via Alameda, unbeknown to the users. SBF communicated with Friedberg, Fenwick & West law firm, and Can Sun, FTX's ex-general counsel regarding this investments. Bankman-Fried claims that the customer funds were solely for future trading, as per FTX's terms, and Alameda had permission to fulfill these actions.
After more than three weeks on the stand, Bankman-Fried will be the last witness shedding light on the alleged fund’s mixture between FTX and Alameda. As per Kaplan, the jury's decision will arrive in the coming week without having heard all of SBF's statements.
So far, SBF has denied allegations on the seven charges in the criminal case. However, it's predicted he'll be facing an additional five counts in another trial scheduled for March 2024. Can you still rely on crypto exchanges amid the downfall of FTX? Update - the story is still unfolding, with additional details expected soon.
Published At
10/26/2023 7:04:59 PM
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