Ex-Crypto boss Bankman-Fried’s trial nears end: ‘I deeply regret not taking a deeper look’ at claims
The closing arguments are set to begin on Wednesday in the trial of former Crypto boss Sam Bankman-Fried’s fraud trial in New York,
The founder of the now bankrupt cryptocurrency exchange FTX stepped down from the witness stand in Manhattan federal court shortly before noon on Tuesday as his cross-examination ended.
Bankman-Fried is charged with seven counts of wire fraud and conspiracy to launder money for his role in the collapse of the cryptocurrency exchange, though has pleaded not guilty.
Prosecutors allege he “misappropriated and embezzled” billions of dollars from his customers. If convicted, he could face a prison sentence of decades.
He told the court that he thought it was “permissible” for Alameda to spend sister hedge fund FTX’s customer funds, but had not been aware until October 2022 that the company had actually done so.
“I deeply regret not taking a deeper look into it,” Bankman-Fried said, as he stepped down from the stand during his defence on Tuesday.
Prosecutor Danielle Sassoon reportedly pressed Bankman-Fried to explain why he had not tried to understand what was happening between Alameda and FTX by June 2022, when it appeared at one point that the trading firm had gone bankrupt.
He said that he had “trusted” that his former friends and employees had the situation under control.
At times during Sassoon’s questions, Bankman-Fried allegedly appeared visibly restless, blinking furiously and shifting back and forth, responding with “yeps”.
Prosecutors say he tried to hide the transfers between the two firms and their close relationship – and have buttressed their allegations with text messages, spreadsheets and tweets.
Yesterday, prosecutors also asked him about the jets; Bankman-Fried attempted to justify how often he flew privately from the Bahamas to Washington by saying he needed to meet with senators and regulators.
The closing statements later on Wednesday.