Former FTX CEO Sam Bankman-Fried’s upcoming testimony has been outlined in a letter to Judge Lewis Kaplan by his lawyer, Mark Cohen.
In the letter submitted by Cohen to inform the courtroom of the deliberate testimony throughout Bankman-Fried’s direct examination, the protection requested approval to receive testimony relating to Bankman-Fried’s consciousness of counsel’s participation in particular issues, following the courtroom’s order from Oct. 1, 2023.
FTX, FTX US and Alameda Research entered bankruptcy proceedings on Nov. 11, 2022, with Bankman-Fried resigning as CEO. He was arrested in the Bahamas on Dec. 12 after the United States government formally notified the nation of costs in opposition to him. Meanwhile, FTX co-founder Gary Wang and former Alameda Research CEO Caroline Ellison agreed to plead guilty to the costs made in opposition to them and are cooperating with the government.
Bankman-Fried’s testimony would challenge government allegations, notably regarding counsel involvement in occasions resembling auto-deletion insurance policies, creating north dimension entities, the fee agent settlement, loans from Alameda and drafting FTX phrases of service.
The protection argues that Bankman-Fried’s understanding of authorized counsel’s involvement is related to his mind-set and good religion. Furthermore, they assert that his data of business practices is crucial to reveal his perception in performing in keeping with accepted norms.
According to the letter, Ellison’s acknowledgment of providing manipulated data, former FTX chief expertise officer Gary Wang’s claims of Bankman-Fried’s involvement in enabling Alameda to “withdraw unlimited funds,” and former FTX engineering director Nishad Singh’s testimony about Alameda’s “excessive” celebrity endorsements purchases, underscore the importance of Bankman-Fried’s testimony relating to his intentions on Nov. 12, 2022, to counter inferences drawn from prior witness statements.
Furthermore, the letter notes that the protection plans to have Mr. Bankman-Fried testify about his honest intentions relating to his compliance with directives from Bahamian authorities. This testimony would revolve round his perception that Bahamian authorities prioritized FTX clients’ well-being and that FTX’s in-house and U.S. chapter counsel had potential conflicts of curiosity.
The United States government is predicted to wrap up its case in opposition to Bankman-Fried on the morning of Oct. 26, with protection attorneys seemingly ending the next day. Prosecutors added they have been unsure whether or not rebuttal witnesses could be essential relying on Bankman-Fried’s testimony. Closing arguments might be held earlier than Oct. 31.
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