Sam Bankman-Fried To Testify In Court: Crypto Market Holds Its Breath

Sam Bankman-Fried's attorney Mark Cohen on Wednesday said the FTX founder will be testifying in court.

This update comes just ahead of the highly anticipated Benzinga's Future of Digital Assets conference on Nov. 14. The conference, set to delve into the trajectory of digital assets, is likely to discuss the ramifications of such high-profile testimony on the future of the industry.

In addition to Bankman-Fried, Cohen mentioned that three other witnesses would be presented, including a lawyer from the Bahamas, according to the Twitter account Inner City Press, which is posting from inside the courtroom. 

There's a possibility that finance expert Joseph Pimbley might be stipulated out, Cohen said. 

The assistant U.S. Attorney emphasized the need for cross-examination.

Judge Lewis Kaplan expressed concerns over the defense case's duration, which is estimated at around one hour. Addressing these concerns, Cohen proposed an earlier start and estimated that Bankman-Fried's testimony could extend throughout a significant portion of Thursday, with cross-examination slated for Friday.

This timeline might push the closing statements to the beginning of the next week.

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The assistant U.S. attorney in the case highlighted the uncertainty surrounding Monday's closing, especially if Bankman-Fried decides to testify. Judge Kaplan, aiming for clarity, pressed on understanding the prosecution's position on count one, raising the possibility of a special verdict.

Once a renowned figure in the crypto industry, Bankman-Fried is now confronting potential long-term imprisonment if convicted of the charges against him. He is accused of orchestrating the movement of FTX client funds to Alameda Research, a related hedge fund.

These funds were allegedly used for high-risk ventures, political contributions, and lavish property acquisitions, leading to the financial downfall of both entities last year.

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