FTX Founder Testimony Ends, Denies Knowledge of Customer Funds Misappropriation

Sam Bankman-Fried denies knowing about the misappropriation of FTX customers’ funds as his heated testimony finally ends.

Popular cryptocurrency entrepreneur Sam Bankman-Fried (SBF) concluded his testimony yesterday, October 31, in the ongoing criminal fraud trial surrounding the collapse of FTX. 

Federal prosecutors grilled the FTX founder to ascertain his role that led to the collapse of the exchange.

SBF Denies Knowing About Clients Funds Misappropriation

According to a New York Times (NYT) report, Mr. Bankman-Fried repeatedly denied knowing about the misappropriation of FTX customers’ funds.

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During the cross-examination yesterday, U.S. Assistant Attorney Danielle Sassoon asked SBF to comment on whether he directed any FTX employee to spend clients’ funds on other ventures, including real estate and other expenditures.

“I don’t recall giving any direction,” SBF stated thrice before his testimony ended.

Additionally, the former crypto mogul did not mention the name of any FTX employee who authorized the misappropriation of customers’ money.

Bankman-Fried Trial Enters New Phase

Both the prosecution and the defense team rested their case yesterday as SBF’s testimony ended. Recall that SBF’s trial started in early October, with top executives from FTX and its sibling company Alameda Research taking the stand.

SBF is currently facing seven charges of wire fraud and money laundering. If found guilty, the FTX founder could spend up to 115 years in prison.

Following the completion of SBF’s testimony, his trial will now enter a new phase. The defense and prosecution teams will give their closing arguments later today, November 1.

The legal teams estimate that they could take up to three hours to present their arguments. It is worth mentioning that the prosecution team will require an extra 45 minutes to state its rebuttal.

U.S. Federal Judge Lewis Kaplan will read the instructions of all seven charges to the juror later today. The judge estimated that the process could take some time. Despite the judge’s remarks, deliberations could begin as early as November 2, 2023.