- The felony trial in opposition to FTX’s ex-CEO, Sam Bankman-Fried, will start on 2 October.
- Prosecutors are planning to current testimony from clients, traders, and co-conspirators at FTX.
Sam Bankman-Fried “SBF” can’t blame his firm FTX’s [FTT] counsel within the opening remarks, the presiding decide dominated.
The felony trial in opposition to SBF begins in a Manhattan federal court docket on 2 October.
On 1 October, Choose Lewis Kaplan ruled that SBF and his authorized group can’t use the “recommendation of counsel” argument to defend his choices because the CEO — no less than, not to start with.
The decide dominated that allowing this argument would danger prejudicing the jury from the start itself. Nonetheless, SBF could make the stated argument at a later stage of the trial.
In August, SBF’s legal professionals opined they meant to inform the court docket that SBF believed he acted “in good religion” as his actions had been primarily based on authorized recommendation given by FTX’s counsel – Fenwick & West.
Quickly after, federal prosecutors moved to court to forestall the protection from utilizing the “recommendation of counsel” argument. They stated that the protection should first show a transparent connection between the alleged wrongdoing and the counsel’s recommendation.
Clients, traders, co-conspirators… an extended line of witnesses
In one other growth, prosecutors informed the court docket that they deliberate to current testimony from clients and traders adversely affected by FTX’s collapse.
The witnesses would element how the utilization of their belongings held at FTX was manner completely different from their expectations of how these belongings could be used.
Among the many witnesses additionally embrace the alleged co-conspirators at FTX, who’ve entered into “responsible pleas.”
Not talked about within the submitting, these witnesses embrace FTX co-founder Gary Wang, former head of engineering Nishad Singh, and former CEO of Alameda Analysis Caroline Ellison. Ellison can also be SBF’s ex.
Prosecutors additionally told the court docket that they’d use testimony from non-U.S. residents too. FTX’s clientele was unfold the world over, with U.S. clients solely in a position to entry it by a smaller division, FTX U.S.
One such witness is a Ukrainian citizen who will testify nearly, as Ukrainian males over the age of 18 can’t depart the nation as a result of ongoing conflict with Russia.
SBF is dealing with costs of cash laundering, wire fraud, and unlawful political donations. If convicted, he might face many years behind bars for his function within the collapse of FTX.
