- Sam Bankman-Fried (SBF) struggles during cross-examination.
- The FTX founder’s evasive tactics failed to hold up against evidence from the prosecution.
- Like his attorneys, the FTX founder also appears to have drawn the ire of Judge Lewis A. Kaplan.
On October 25, the defense team in the Sam Bankman-Fried (SBF) trial made the stunning revelation that the disgraced FTX founder would be taking the stand in a high-risk gamble to sway the jury. The decision followed testimonies from former close associates that he orchestrated fraudulent activities at the exchange.
However, the gamble does not appear to have paid off, as reports from the court suggest that Bankman-Fried was all but eviscerated during cross-examination.
SBF’s Evasive Tact Flops
Bankman-Fried reportedly attempted to dodge tough questions from prosecutors during cross-examination on Monday and Tuesday by claiming ignorance or a lack of recollection. However, these efforts failed to gain traction amid relentless evidence from prosecutors.
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In one instance, the FTX founder asserted that he had not directed investments in Anthropic and K5, only to recant moments later. In another instance, he claimed not to know about the activities of the Alameda settlement team while suggesting that he could not remember firing anyone for activities that led to FTX’s estimated $8 billion hole.
In potentially more damning testimony, the FTX founder told the court that he thought it was permissible to spend fiat deposits from FTX customers while confirming that he never disclosed this spending to customers and investors.
Much like his legal team, Bankman-Fried’s approach appears to be getting on the nerves of Judge Lewis A. Kaplan.
SBF Gets on Judge Kaplan’s Nerves
Judge Kaplan has expressed exasperation during the cross-examination, asking the defendant in one instance to “just answer the question.”
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As highlighted by a sarcastic remark from financial regulations expert Sean Tuffy, the judge’s frustration does not bode well for the former crypto wunderkind, as it only increases the chance of a lengthy sentence in the event of a guilty verdict.
The FTX founder faces multiple charges of fraud and conspiracy to commit fraud that could see him spend over 115 years in prison should the jury find him guilty. Closing arguments in the case are set to kick off on Wednesday, November 1.
On the Flipside
- The FTX founder maintains that he did not intend to defraud customers and investors.
- On Monday, October 30, Bankman-Fried’s lawyers refuted the existence of a fiduciary relationship between FTX and its customers.
Why This Matters
The FTX founder’s struggle during cross-examination suggests that the decision to take the stand may have only compounded his troubles following damning testimony from former collaborators.
Read this to learn more about SBF’s defensive struggles:
SBF’s Defense Appalls Judge With Fumbling of Ellison Cross
Learn more about Starknet’s decision to exclude U.S. users from its STRK reward plan:
Starknet Excludes U.S. In Rewards Plan Amid Regulatory Fears
