Judge Warns Bankman-Fried's Defense Team: Repetitive Questioning 'Needs To Be Curbed'

Judge Lewis Kaplan's patience is wearing thin with the defense team representing FTX FTT/USD founder Sam Bankman-Fried.

In just three days of the trial, Kaplan has expressed significant frustration with the defense's approach, particularly their repetitive and imprecise questioning of government witnesses, Coindesk reported.

During a tense moment, Kaplan told defense attorney Chris Everdell, “I’ve given you a lot of latitude, but” the repetitive questioning “needs to be curbed.”

This was in response to Everdell's cross-examination of Adam Yedidia, a former associate of Bankman-Fried and now a prosecution witness.

The unfolding drama in the courtroom mirrors the discussions about the future of digital assets, a topic that will be explored in depth at Benzinga's Future of Digital Assets conference on Nov. 14.

Yedidia's testimony centered on a software glitch in the FTX crypto exchange, which exaggerated Alameda Research's debt to exchange customers by a whopping $8 billion.

The defense, however, paints a different picture, suggesting that Alameda's banking relationship with FTX was transparent and that the loss of customer funds was not criminal, but perhaps a significant oversight.

The courtroom dynamics have been intense, with Assistant U.S. Attorney Danielle Sassoon frequently objecting to the defense's questions, and Judge Kaplan often siding with the prosecution.

At one point, Kaplan humorously responded to a defense question about a Toyota Corolla, stating, “I don't think there’s anybody in the room who has never seen a Toyota Corolla, so let's get on with it,” which drew laughter from those present.

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As the trial progresses, FTX co-founder and former CTO Gary Wang has begun testifying about his role and the access Alameda had to FTX customer funds.

The jury's perception of the defense's approach remains to be seen.

Yedidia's claim that "FTX defrauded all its customers" could leave a lasting impression, even though it was requested to be struck from the record.

The Department of Justice's strategy appears to be emotionally charged, with testimonies from figures like Matt Huang, who revealed his firm wrote off $278 million in FTX investments.

Wang's testimony will conclude soon, with other witnesses like BlockFi’s Zac Prince expected to testify in the coming days.

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