Continue Live coverage of Sam Bankman-Fried’s testimony. in the FTX fraud case.
Sam Bankman-Fried, the founder of failed cryptocurrency exchange FTX, plans to testify at his criminal fraud trial in Manhattan, his lawyer said Wednesday.
Attorney Mark Cohen confirmed Bankman-Fried’s plans at a hearing with prosecutors and the judge overseeing the case, which took place on the last day of a nearly weeklong break in the trial. Bankman-Fried, 31, is likely to begin testifying Thursday, after federal prosecutors call their final witness in the morning.
“Our client is going to testify,” Cohen said at the hearing.
Bankman-Fried is accused of orchestrating a vast scheme to steal up to $10 billion in deposits from FTX customers. Prosecutors say the cryptocurrency mogul funneled the money into political contributions, real estate purchases and other lavish spending.
Bankman-Fried has pleaded not guilty to seven counts of fraud, conspiracy and money laundering. If he is convicted, he could face what amounts to life in prison.
During the first three weeks of the trial, prosecutors convened a procession of Bankman-Fried’s close friends and colleagues, who testified that the FTX founder lied to clients, investors and lenders about the exchange’s use of clients’ money.
At Wednesday’s hearing, Cohen said the defense planned to call three witnesses in addition to Bankman-Fried. One of them is Joseph Pimbley, a financial services consultant, who is expected to testify about the finances of FTX and Alameda Research, the cryptocurrency trading firm that borrowed billions of dollars from FTX clients. Bankman-Fried founded Alameda before founding FTX.
Cohen also plans to call a Bahamian lawyer who was involved in the Bankman-Fried case, as well as an expert in corporate records preservation.
Bankman-Fried is expected to testify after those witnesses.
Weeks after FTX imploded in November, Bankman-Fried was arrested at his penthouse in the Bahamas, where the exchange was based. He was later extradited to the United States and placed under house arrest at his parents’ home in Northern California. In August, his bail was revoked after a judge ruled that he had attempted to intimidate witnesses.
During the trial, Bankman-Fried spent nights at the Brooklyn Metropolitan Detention Center, where, her lawyers say, she had only intermittent access to the computer files she needs to prepare for trial. In August, attorneys said Bankman-Fried, who is vegan, subsisted on a diet of bread, water and peanut butter.
Bankman-Fried has appeared in court every day of the trial, which began this month, wearing a suit purchased on a discount rack at Macy’s. Her parents, Stanford law professors Joe Bankman and Barbara Fried, have watched from the gallery, along with other powerful legal figures, including Damian Williams, Manhattan’s top federal prosecutor.
