Former FTX CEO denies knowledge of fraudulent activities at crypto exchange during trial testimony
During the criminal trial of Sam "SBF" Bankman-Fried, the jury heard his testimony for the first time, in which he denied knowledge of fraudulent activities at the crypto exchange. Bankman-Fried suggested that the former chief technology officer at FTX, Wang, was partly responsible for creating the "allow negative" button for Alameda Research, which gave the crypto hedge fund the ability to trade more funds than it had available. Bankman-Fried stated that he was not entirely sure what was happening with Alameda's line of credit at the time and believed the funds were being held in a bank account or sent to FTX in stablecoins. <br>
Reuters: SBF says it did not defraud anyone or steal client funds
Reported by Reuters, during Friday's trial, SBF stated: "When FTX cryptocurrency exchange collapsed, many people were harmed, but I did not deceive anyone or steal customer funds. We thought we might be able to create the best product on the market, but the result was basically the opposite of the truth. Many people were harmed, including customers and employees, and the company eventually went bankrupt."
Sam Bankman-Fried's evasive testimony turns first day of trial into "deposition"
According to Judge Lewis Kaplan, Sam Bankman-Fried's first day of testimony in his criminal trial turned into a "deposition" due to his evasive responses to questions. The defense attempted to question Bankman-Fried about the lawyers he relied on while running FTX and Alameda, but the government objected. Bankman-Fried struggled with his memory and often gave non-answers or apologies for not knowing more during cross-examination by Assistant U.S. Attorney Danielle Sassoon. The trial had multiple overflow rooms, and author Michael Lewis was in attendance. Bankman-Fried is expected to testify soon, with the trial possibly concluding by Tuesday.
Former FTX CEO denies knowledge of alleged money laundering scheme in court testimony
Former FTX CEO Sam "SBF" Bankman-Fried denied knowledge of why user funds were moved from a bank account with Alameda Research to a firm called North Dimension, which is allegedly used for money laundering. Bankman-Fried suggested that banks may have been more comfortable with North Dimension, avoiding well-known hedge funds connected to crypto like Alameda. He also testified to believing that taking FTX deposits through Alameda Research was legal, but did not recall discussions with auditors about FTX user funds going to the entity as well as Alameda. The criminal trial, which started on Oct. 3, will likely end within the next seven days following Bankman-Fried's testimony and closing arguments from both sides.
SBF says FTX lawyers were involved in providing personal loans to executives
FTX founder Sam Bankman-Fried testified that FTX's legal department drafted futures contracts for loans from Alameda Research to him and other former executives of the exchange. He said that most of the loans were used for investment purposes.
SBF's lawyer Mark Cohen asked, "Are you comfortable with the arrangement of these loans by the lawyers?" SBF responded, "Of course."
SBF testifies that FTX stores clients’ cryptocurrencies in ‘integrated wallets’
FTX founder Sam Bankman-Fried stated in court that FTX customer assets are stored together in so-called "omnibus wallets", rather than in separate cryptocurrency wallets. He also mentioned that storing customer assets in omnibus accounts is an industry practice. He recounted an example of sending funds to his wallet on the cryptocurrency exchange Huobi and seeing the funds immediately transferred to the omnibus wallet.
SBF Trial to Welcome Main Accused to the Stand
Sam Bankman-Fried, the main accused in a criminal trial, is set to take the witness stand in his defense after some of his former colleagues testified. His testimony is expected to take a whole day, with cross-examination potentially happening on Friday. Bankman-Fried is one of three additional witnesses that his defense team plans to call to the stand. The prosecution team is scheduled to complete the presentation of its case on October 26th after presenting over a dozen witnesses, including Bankman-Fried's former associates.
FTT's 24-hour increase reached 25.91%, which may be affected by the news that SBF will appear in court to testify.
According to market data, FTT has surged to 1.4511 USDT in the short term, with a 24-hour increase of 25.91%, possibly due to the news that SBF will testify in court on Thursday. The current price is 1.3341 USDT.
Former federal prosecutor: SBF testifying on his own behalf was 'desperate'
SBF's chief lawyer Mark Cohen revealed earlier that the defense has three potential witnesses, and SBF will also testify in court. Former federal prosecutor and current Pallas and Partners partner Josh Naftalis commented, "We have entered the final game, to use another metaphor, this is his last-ditch effort." US Assistant Prosecutor Nicolas Roos said that if the defendant testifies in court, "it may no longer be realistic to end the trial next Monday."
Lawyer: SBF’s deposition may take all day Thursday
On Wednesday's conference call, SBF's lawyer Mark Cohen confirmed that SBF will testify in court on October 26th (Thursday), and the testimony may take a whole day, followed by cross-examination on Friday. Earlier, Fox reporter Eleanor Terrett posted on X platform that SBF's lawyer Cohen pointed out that SBF will testify in the fraud trial, and three defense witnesses will also attend.
