Sam Bankman-Fried, the founder of failed cryptocurrency exchange FTX, plans to testify at his fraud trial in Manhattan, his lawyer said Wednesday.
Lawyer Mark Cohen confirmed Mr. Bankman-Fried’s plans to take the witness stand at a hearing with prosecutors and the judge overseeing the case, held on the final day of a nearly week-long break in proceedings. Mr. Bankman-Fried, 31, is expected to begin testifying on Thursday after federal prosecutors called their final witness that morning.
“Our client will testify,” Mr. Cohen said at the hearing.
Mr. Bankman-Fried is accused of orchestrating a comprehensive scheme to steal up to $10 billion worth of deposits from FTX customers. Prosecutors say the cryptocurrency mogul funneled the money into political contributions, real estate purchases and other lavish spending.
Mr. Bankman-Fried has pleaded not guilty to seven counts of fraud, conspiracy and money laundering. If convicted, he could face life in prison.
In the first three weeks of the trial, prosecutors convened a procession of Mr. Bankman-Fried’s close friends and colleagues who testified that the FTX founder lied to customers, investors and lenders about the exchange’s use of customer funds.
At Wednesday’s hearing, Mr. Cohen said the defense planned to call three witnesses in addition to Mr. Bankman-Fried. One of those is Joseph Pimbley, a financial services consultant who is expected to testify about the finances of FTX and Alameda Research, the crypto trading firm that has borrowed billions of dollars from FTX clients. Mr. Bankman-Fried founded Alameda before launching FTX.
Mr. Cohen also plans to call a Bahamian lawyer who was involved in Mr. Bankman-Fried’s case, as well as an expert in corporate records retention.
Mr. Bankman-Fried is expected to testify after these witnesses.
Weeks after FTX collapsed in November, Mr. Bankman-Fried was arrested at his penthouse apartment in the Bahamas, where the exchange was based. He was then extradited to the United States and placed under house arrest at his parents’ home in Northern California. In August his bail was revoked after a judge ruled he had attempted to intimidate witnesses.
During the trial, Mr. Bankman-Fried spent his nights at the Metropolitan Detention Center in Brooklyn, where his lawyers said he had only intermittent access to the computer files he needed to prepare for trial. In August, lawyers said Mr. Bankman-Fried, who is vegan, subsisted on bread, water and peanut butter.
Mr. Bankman-Fried appeared in court every day of the trial, which began this month, wearing a suit he bought at a Macy’s discount store. His parents, Stanford law professors Joe Bankman and Barbara Fried, watched from the gallery along with other powerful jurists, including Damian Williams, the top federal prosecutor in Manhattan.