Bankman-Fried Takes the Stand With a Great Focus on Relying on Counsel and Legal Advice

The erstwhile FTX CEO Sam Bankman-Fried testified Thursday without jurors present. Bankman-Fried was questioned by his attorney, Mark Cohen, earlier the judge. He described FTX elder unit utilizing encrypted messaging, discussed obtaining Alameda’s slope account, and talked astir concern operations with erstwhile wide counsel members. Much of the absorption was connected FTX’s erstwhile lawyers and the firm’s presumption of service.

FTX’s Former CEO Highlights Reliance connected Lawyers During Court Appearance

Sam Bankman-Fried (SBF) took the basal connected October 26, 2023, and was questioned by his lawyer, Mark Cohen. Matthew Russell Lee of Inner City Press broadcast the courtroom account connected societal media level X. Bankman-Fried’s relationship of the concern follows his caller interactions with chap coworkers Caroline Ellison, Nishad Singh, and Gary Wang.

SBF discussed utilizing encrypted messaging apps, third-party hacks, leaning connected lawyers for ineligible guidance, and interacting with regulators successful the Bahamas. SBF confirmed FTX utilized Telegram, Slack, and the auto-deleting app Signal for communications. He said encryption was important due to the fact that FTX 3rd parties had been hacked, though ne'er the halfway systems. He justified utilizing Signal by saying it was mostly utilized for informal chatter, not for large decisions.

“Those were not channels for decisions,” the erstwhile FTX brag insisted.

Regarding erstwhile FTX lawyers, SBF said helium signed papers to acceptable up FTX’s slope relationship per an attorney’s alleged instructions and took comfortableness structuring loans based connected guidance from his lawyers and instrumentality steadfast Fenwick & West. He besides claimed the FTX presumption of work and different cardinal documents were prepared by Dan Friedberg and Fenwick & West.

On regulators, SBF described an aggravated sojourn from Bahamian constabulary who took his passport. This occurred aft a gathering with Bahamas regulators which SBF attended with his begetter and FTX executives. “Gary Wang was successful the gathering but not successful the meeting,” SBF disclosed. Reportedly, determination were plans to determination cardinal assets pursuing the exchange’s hack.

SBF besides discussed his commencement successful crypto successful 2017, and the usage of omnibus wallets based connected tracking exchanges. SBF continued to thin connected citing his lawyers and their proposal arsenic a defence successful his testimony. When asked by Cohen if helium believed that “taking FTX deposits done Alameda was legal,” the FTX co-founder replied, “I did.”

There was a heavy focus from some the erstwhile FTX brag and Cohen with the repeated mentioning that helium relied connected counsel and ineligible advice. Following Cohen’s questions the tribunal took a interruption and U.S. prosecutors program to convene aboriginal and further cross-examine SBF connected Friday.

What bash you deliberation astir the archetypal portion of Bankman-Fried’s testimony? Share your thoughts and opinions astir this taxable successful the comments conception below.