Former FTX CEO Sam Bankman-Fried Denies Fraud, Discusses Political Donations in Court Testimony
Summary:
Former FTX CEO Sam "SBF" Bankman-Fried testified in court about his relationships and financial activities, denying any fraud and explaining contributions he made to U.S. politicians derived from Alameda Research loans. His personal life was also discussed, with inquiries about a past relationship and his casual lifestyle. The legal proceedings are due to conclude next week, with jury deliberations to follow on the seven criminal charges against him.
During the ongoing trial of former FTX CEO Sam "SBF" Bankman-Fried, defense lawyer Mark Cohen questioned him about his ties to Caroline Ellison and crypto donations. On October 27, in the courtroom revelations, Bankman-Fried stated he hadn't conversed about political contributions in the US with ex-FTX engineering chief Nishad Singh and Ryan Salame, the previous co-CEO of FTX Digital Markets. Bankman-Fried disclosed that the funds given in his name were borrowed from Alameda Research with an aim of influencing US regulatory policies pertaining to cryptocurrencies, saying, "I deemed policy vital. The Congress, the executive branch...Certain ones were positively inclined towards FTX's crypto lobbying, while others were not."
Beyond the charges on trial, the defense counsel also probed into Bankman-Fried's personal life, chiefly his fractured relationship with Ellison. He reportedly said, pointing to Ellison, "She had larger expectations than I could meet. This wasn't the first instance with me." Ellison, when on stand, explained the breakup due to SBF's lack of time for her. On being asked why he dressed plainly and left his hair unstyled, he retorted that it was due to his laziness and his choice to dress comfortably in shorts and t-shirts.
In the statements presented at the court the same day, Bankman-Fried rebuffed any allegations of cheating FTX customers by directing Alameda to use clients’ funds. Ex-CTO of FTX, Gary Wang, among others, suggested that SBF had authorized Alameda to trade beyond its liquidity.
It is speculated that Bankman-Fried's testimonial conclusion will be drawn early the next week by the Department of Justice prosecutors. Once all the motions and legal glitches get addressed, jury discussion on the seven criminal charges is expected to follow.
In light of the fall of FTX, doubts over the reliability of crypto exchanges persist.
Published At
10/27/2023 7:26:40 PM
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