The trial of former CEO of FTX Sam Bankman-Fried (SBF) has entered a crucial phase, with his defense counsel concluding their arguments on Tuesday. Over the past four weeks, Bankman-Fried has been facing trial sessions in a lower Manhattan courtroom, being charged with fraud and his alleged involvement in the collapse of the FTX exchange and its investment arm, Alameda Research, in November 2022.
CEO of FTX Sam Bankman-Fried Trial Nearing Conclusion
While the trial has been ongoing, Bankman-Fried’s testimony came to an end on Tuesday morning after spending three whole days on the witness stand. Onlookers gathered in the courtroom, making it a relatively quieter day compared to the previous day. While responding to Assistant U.S. Attorney Danielle Sassoon, Bankman-Fried appeared to have sharpened his responses, offering more concise answers than he had on Monday.
SBF ‘Deeply’ Regrets Ignorance
Throughout the trial, Bankman-Fried maintained his characteristic style of minimal commentary, often admitting ignorance rather than wrongdoing. When questioned about the significant case involving an $8 billion deficit in the exchange’s balance sheet, he claimed not to have been aware of it.
Throughout his testimony, Bankman-Fried portrayed himself as a busy CEO who delegated operational responsibilities to subordinates. He stated that he “deeply” regrets this oversight that had adverse consequences for customers and employees but denied any acts of fraud or embezzlement.
Another point of contention raised by the prosecution was Bankman-Fried’s lavish lifestyle, particularly his use of a private jet. In response, the defendant argued that these travels were primarily business-related and constituted valid expenses for a CEO.
Interestingly, while Bankman-Fried appeared reserved when facing Sassoon, he seemed considerably more relaxed during the redirect examination conducted by his own defense attorney, Mark Cohen. He even displayed humor at times, making a joke about an unflattering photo of him sleeping on a private jet and sharing laughs with his attorney. This marked a striking contrast in his demeanor.
It is important to note that SBF’s three-day-long testimony appears unfavorable for him. On his second day of testimony on Monday, SBF repeatedly responded with “I don’t recall” at least 28 times during the prosecution’s cross-examination. U.S. District Judge Lewis Kaplan admonished him for avoiding direct answers.
Next Up: The Jury
Following a lunch break, the defense rested its case, and prosecutors opted not to present a rebuttal. The trial then transitioned to its next phase, with closing arguments scheduled to begin on November 1. Jurors are expected to commence their deliberations shortly thereafter.
The stakes are high for the 31-year-old former CEO, as he faces potential life imprisonment if found guilty on all counts. He has been in custody since August, when his bail was revoked over concerns of witness tampering.
