Ex-FTX CEO Sam "SBF" Bankman-Fried's Fraud Trial: Key Witnesses Testify on Alleged Misuse of Funds
Summary:
The ongoing trial of ex-FTX CEO Sam "SBF" Bankman-Fried is taking place in New York. The prosecution has presented testimonies from several key figures, such as former FTX legal counsel Can Sun and former Alameda CEO Caroline Ellison, detailing the alleged misuse of FTX funds and irregularities involving Alameda Research. The case, brought by the U.S. Department of Justice, accuses Bankman-Fried of fraudulent activities resulting in FTX's downfall. The trial is set to continue on October 26th.
The trial of Sam "SBF" Bankman-Fried, the former CEO of cryptocurrency platform FTX, is underway in New York, with Cointelegraph reporters covering the story. Here's what has unfolded so far.
October 19: Can Sun, the ex-General Counsel for FTX, testified about his awareness of irregularities involving Alameda Research. Sun stated that he only learned of Alameda's exemption from FTX's liquidation engine, which ordinarily liquidates loss-inducing trades, in August 2022. As a response, Sun claimed he started working on a delay-liquidation system to substitute Alameda's non-exemption. This plan, however, encountered resistance and never came to fruition.
Sun also confessed to being heavily dependent on Bankman-Fried's assertions about client fund segregation. Plus, he presented a spreadsheet he utilized to monitor Alameda's $2.1 billion loans to executives, including Bankman-Fried.
October 18: During the trial, Judge Lewis Kaplan expressed dissatisfaction with the representation by both parties. Kaplan stated his concerns emerged after a witness presented evidence for only fifteen minutes after travelling for three hours.
And in a detailed analysis by accounting specialist Peter Easton, he elaborated on the supposed intermingling of funds between FTX and Alameda Research, shedding light on Alameda's $6.6 billion loan repayment during the 2022 bear market.
October 13: BlockFi's warning about its over-exposure to FTX Token in August 2021 was highlighted in court. Zac Prince, the former CEO of BlockFi, testified that Alameda had always repaid its loans on time until FTX collapsed in November 2022.
October 12: Caroline Ellison, the former Alameda CEO, testified about her decision-making processes within Alameda and FTX. Her admissions indicated she felt unqualified for her role and was heavily influenced by Bankman-Fried.
October 11: Ellison continued her testimony, focusing on FTX's final months and how Alameda had to repay millions in loans due to the market downturn.
October 10: Testimonies from Gary Wang, a co-founder of FTX, and Ellison were presented, discussing the alleged misuse of FTX funds by Bankman-Fried.
The court hearing of Bankman-Fried will recommence on October 26th. The prosecution is expected to rest their case on this date, however, it is still unclear whether the defense will present a case. The court trial is ongoing, as stipulated by Judge Lewis Kaplan. The case against Bankman-Fried is brought by the U.S. Department of Justice, which accuses him of fraudulent activities resulting in FTX's downfall.
Published At
10/19/2023 6:18:55 PM
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