Former FTX CEO Sam Bankman-Fried’s upcoming testimony is outlined in a letter to Judge Lewis Kaplan from his attorney, Mark Cohen.
in the letter sent Cohen to inform the court of anticipated testimony during direct examination of Bankman-Fried, the defense requested approval to obtain testimony regarding Bankman-Fried’s knowledge of the attorney’s involvement in specific matters, following the court’s Oct. 1 order of 2023.
FTX, FTX US, and Alameda Research filed for bankruptcy on November 11, 2022, and Bankman-Fried resigned as CEO. He was arrested in the Bahamas on December 12 after the United States government formally notified the country of the charges against him. Meanwhile, FTX co-founder Gary Wang and former Alameda Research CEO Caroline Ellison have agreed to plead guilty to the charges against them and are cooperating with the government.
Bankman-Fried’s testimony would challenge the government’s allegations, particularly regarding the lawyers’ involvement in events such as the automatic deletion policies, the creation of northern dimension entities, the paying agent agreement, the Alameda loans and drafting FTX’s terms of service.
The defense argues that Bankman-Fried’s understanding of the attorneys’ involvement is relevant to her state of mind and good faith. Furthermore, they state that their knowledge of industry practices is essential to demonstrate their belief in acting in accordance with accepted standards.
According to the letter, Ellison’s acknowledgment of providing manipulated data, claims by former FTX chief technology officer Gary Wang about Bankman-Fried’s involvement in allowing Alameda to “withdraw unlimited funds” and testimony by the former chief engineering officer of FTX’s Nishad Singh on “excessive” celebrity endorsement of Alameda purchases, underscore the importance of Bankman-Fried’s testimony about her intentions on November 12, 2022, to counter inferences drawn from previous witness statements.
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Additionally, the letter notes that the defense plans to have Mr. Bankman-Fried testify about his sincere intentions regarding his compliance with directives from Bahamian authorities. This testimony would revolve around his belief that Bahamian authorities prioritized the well-being of FTX’s clients and that FTX’s in-house bankruptcy counsel and that of the United States had potential conflicts of interest.
The U.S. government is expected to conclude its case against Bankman-Fried on the morning of Oct. 26, with defense attorneys likely finishing the next day. Prosecutors added that they were unsure whether rebuttal witnesses would be necessary depending on Bankman-Fried’s testimony. Final arguments could be made before October 31.
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