The trial against Sam Bankman-Fried will reach its final phase in the next few days. Prosecutors will rest their case on October 26 after reviewing nearly 20 witness statements in the case.
Prosecutors presented a number of witnesses over the past three weeks, including former FTX employees, customers, investors, government officials and law enforcement officials. At the heart of the case is the central argument that Bankman-Fried intentionally misled them all and that he was behind the decisions that led to the $8 billion gap between FTX and Alameda Research in November 2022.
As for Bankman-Fried’s defense, they have not yet confirmed whether she will resign from the case. In criminal proceedings, lawyers are not required to present a defense. Assuming his legal team presents a case, that will also begin on October 26.
Bankman-Fried’s attorney, led by Mark Cohen and Christian Everdell, struggled to convey a narrative to the jury. The lawyers even missed crucial arguments in the cross-examination of his former closest friends, including Caroline Ellison, Nishad Singh, Adam Yedidia and Gary Wang. Working with the government, the group accused Bankman-Fried of inciting them to commit crimes.
A lawyer who observed the trial told Cointelegraph that if the government initiates proceedings, there is a 95% chance of an indictment, underscoring the significant challenge facing the defense. However, prosecutors have the burden of proving the alleged crimes.
Related: Caroline Ellison wanted to resign but feared a bank run on FTX
One of the highlights of last week in court was the testimony of FTX’s former technical director. Singh told jurors that Bankman-Fried directed him to make multimillion-dollar venture investments through loans from Alameda. According to Singh, he did not know that the funds were tied to the deposits of FTX customers. Singh faces up to 75 years in prison for defrauding crypto exchange users.
This week, District Judge Lewis Kaplan also lost patience with lawyers for both parties after a witness who fled Texas for the trial testified for about 15 minutes.
“We had a witness this morning who knew absolutely nothing…and this afternoon we’re flying someone in from Texas […] he knows nothing or next to nothing,” Judge Kaplan said, complaining about the strategies used by prosecutors and defense witnesses.
Also in recent days, Can Sun, FTX’s former general counsel, presented a spreadsheet tracking $2.1 billion in loans to Bankman-Fried and other executives. Can was unaware of the commingling of funds from the exchange with Alameda, he told jurors. He is also cooperating with the government in the case.
Bankman-Fried faces up to 115 years in prison if convicted of fraud and conspiracy to commit fraud.
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