Jury Absent for Sam Bankman-Fried’s Crucial Testimony

Sam Bankman-Fried recently found himself on the witness stand. However, this testimony came after Judge Lewis Kaplan sent the jury home for the day. This decision hints at the judge needing to determine which parts of the testimony will eventually be admissible.

Additionally, sources like Inner City Press provided insight into the proceedings. Bankman-Fried disclosed his communication habits, mentioning platforms such as Slack and Signal. Security concerns were notably addressed regarding the company’s Hong Kong headquarters. Although third parties experienced hacks, Bankman-Fried was adamant there was no core breach.

Sam Bankman Affirms Trust in Legal Advice

Mark Cohen, the defendant’s attorney, got to the crux of the matter. He delved into Bankman-Fried’s belief system, particularly concerning the legality of transferring FTX deposits via Alameda. In response, Bankman-Fried was forthright: he believed it was legal.

Moreover, Cohen sought clarity on the advice Bankman-Fried received from FTX’s legal team regarding investments. Bankman-Fried stated, “I told [FTX’s legal representatives] of an investment I wanted to make.” He added that sometimes the investor would be him, not Alameda. This decision, he said, was driven by a business perspective. Interestingly, when asked if he found solace in the lawyers’ structure of the investments, Bankman-Fried responded affirmatively.

Trial Shifts with Bankman-Fried’s Testimony

This court appearance marked the first time the public heard Bankman-Fried’s side. Until now, his involvement was limited, primarily to note-taking while government prosecutors presented their arguments. Consequently, the choice to let him testify is seen by many as a bold move, especially given the prosecution’s narrative.

Some speculate the defense might be aiming for a stalemate, hoping for a hung jury over a not-guilty verdict. Bankman-Fried, facing significant charges, including fraud, has much at stake. The allegations claim that he and other FTX executives misused billions in customer assets for personal investments. These accusations weigh heavily, especially after last year’s crypto exchange’s bankruptcy filing.

The court had anticipated Bankman-Fried’s testimony to span at least a day, with a follow-up cross-examination. However, this timeline might shift based on the jury’s return. Given the charges’ gravity, this trial’s outcome will significantly impact the crypto industry and its stakeholders.