SBF will defend itself in court to prove that it did not commit fraud or other illegal acts
On October 25th, as reported by Coindesk, SBF, the founder of FTX, will testify in the criminal trial and appeal directly to the jury to prove that he did not commit fraud or conspire to commit fraud on the once large-scale cryptocurrency trading platform FTX. SBF will describe his views on the matter to 12 jurors and 6 alternate jurors, who will be asked to determine whether he is guilty and to eliminate reasonable doubt.
Sam Bankman-Fried's Trial Nears End as Prosecution Rests Case in $8 Billion Fraud Case
The trial of Sam Bankman-Fried is nearing its end, with the prosecution set to conclude their case on October 26 after hearing from almost 20 witnesses. The prosecution has argued that Bankman-Fried intentionally deceived former FTX employees, customers, investors, government officials, and law enforcement agents, resulting in an $8 billion gap between FTX and Alameda Research in November 2022. Bankman-Fried's defense has not yet confirmed whether they will present a case, but if they do, it will begin on October 26. The defense has struggled to present a narrative to jurors, and the prosecution has the burden of proving the alleged crimes.
Prosecutors argue "effective altruism" is not a valid defense in Sam Bankman-Fried's fraud trial
Prosecutors in the fraud trial of Sam Bankman-Fried have requested that the judge instruct the jury that his claim of being an effective altruist is not a valid defense. Bankman-Fried is accused of stealing billions of dollars from FTX customers and using them for personal gain, including political donations, real estate, and investments. His defense team has attempted to present him as a philanthropist driven by a genuine desire to make a positive impact on the world, but prosecutors assert that effective altruism offers no defense to fraud. The trial is expected to conclude next week after jury instructions and closing arguments.
Former FTX General Counsel Resigned From the Company After Discovering Huge Hole in Balance Sheet
October 20th, former FTX general counsel Can Sun testified in the SBF criminal trial, stating that in November 2022, asset management company Apollo Global Management expressed interest in investing in FTX and requested a copy of the financial statements. When the copies were made, Can Sun discovered a $7 billion gap in FTX's balance sheet related to Alameda. Can Sun resigned from the company afterwards. Can Sun previously worked as a lawyer at Fenwick and West and joined FTX in August 2021.
Former FTX General Counsel: Lending client funds to Alameda Research was never approved
Can Sun, FTX's general counsel, told the jury during Sam Bankman-Fried's criminal fraud trial that he "never approved" of FTX lending customer funds to sister company Alameda Research. Can Sun served as FTX's general counsel from August 2021 to November 2022, during the period when the exchange collapsed. When asked if he agreed to Alameda using FTX customer funds, he said "absolutely not."
SBF Used Client Funds to Purchase $228 Million in Real Estate in the Bahamas
Notre Dame, an expert witness in the SBF trial, and an accounting professor at the university, testified on Wednesday, presenting the results of a comprehensive analysis of thousands of pages of bank statements and internal data from FTX. The results showed that as of June 2022, SBF had spent $228 million of client funds on real estate in the Bahamas, including purchasing properties worth $16.4 million for his parents. $195.2 million flowed to so-called "insiders," executives at FTX and Alameda.
Sam Bankman-Fried's Defense Strategy Remains Unclear as Trial Continues
Sam Bankman-Fried's defense team is uncertain about their strategy and has had difficulty scoring points during cross-examination of the prosecution's witnesses. It is unclear whether they will call their own witnesses or rely solely on cross-examination.
The U.S. prosecutors expect the SBF trial to be concluded as soon as next week. Today, we will pay attention to whether SBF will appear in court to testify.
On October 18th, news came out that the final stage of the trial of SBF, the founder of FTX, has begun. The prosecution has only a few witnesses left, and most of the important figures have already testified. The US prosecution told the court that they were slightly ahead of schedule and could wrap up the case as early as next week (note that the trial will be suspended on Friday and will not resume until next Thursday). However, it is unclear what action the defense will take, and it is also unclear whether SBF will appear in court.
SBF's defense lawyer, Mark Cohen, told the judge and prosecutor on Tuesday, "We are still considering whether to file a lawsuit and the nature of the lawsuit. But I still believe that if we file a lawsuit, it will not exceed a week and a half at most."
Earlier, SBF applied to increase his medication dosage during the trial to ensure his ability to testify. Starting from Thursday, SBF will be able to obtain an increased dosage of medication, and the defense will evaluate whether he can appear in court.
FTX has signed a sponsorship agreement of nearly US$100 million with Riot Games and sponsored nearly US$67 million in music festivals.
According to court documents presented as evidence in Sam Bankman-Fried's criminal trial, FTX agreed to pay nearly $100 million in sponsorship fees to the development team of the game League of Legends, Riot Games, who agreed to receive nearly $100 million over seven years. After FTX declared bankruptcy due to customer losses, Riot Games began trying to withdraw from the deal at the end of last year.
The documents also show that FTX agreed to provide approximately $42 million to the Tomorrowland music festival before 2026, an event frequently attended by top DJs such as Solomun. The Coachella music festival, held annually in Southern California, also signed a $25 million agreement with FTX.
This spreadsheet details dozens of sponsorship agreements signed by FTX during the crypto bull market, which prosecutors included as evidence on Monday and released in full today.
U.S. judge approves prosecutors' motion to prevent SBF from mentioning investment in Anthropic
According to a court filing submitted on the evening of October 16th, Judge Lewis A. Kaplan of the United States signed an order approving the prosecutor's motion to prevent Sam Bankman-Fried from mentioning the value of Anthropic, an artificial intelligence company he is currently investing in. The prosecutor alleges that SBF's $500 million investment in 2022 was funded by stolen funds from FTX customers.
