Sam Bankman-Fried To Counter Former FTX CTO's Testimony In Crypto Fraud Trial

Lawyers representing FTX founder Sam Bankman-Fried have outlined the anticipated testimony he will present in his ongoing fraud trial.

The communication, provided as a formal letter to Judge Lewis Kaplan, sheds light on the defense strategy and seeks to counter allegations of misappropriation and embezzlement.

The developments of Bankman-Fried's trial will be among the points of conversation at Benzinga's Future of Digital Assets conference on Nov. 14. The conference, a notable event in the digital asset space, will highlight the potential impact of the trial on the broader crypto industry.

The defense intends to underscore Bankman-Fried's awareness of the involvement of legal counsel in significant decisions.

This includes data retention policies, the creation of entities, loan structures, and updates to FTX's Terms of Service. Such emphasis is aimed at bolstering the argument that actions were taken in good faith, believing them to be appropriate and lawful.

Also Read: Trader Who Nailed 2022's Crypto Crash Sends A Warning: Read This Before Going Long

1. The defense also seeks to present testimony regarding industry practices, particularly the use of omnibus wallets, to highlight Bankman-Fried's belief that FTX’s actions were consistent with standard crypto industry practices.

2. Furthermore, the defense plans to counter testimony provided by former FTX CTO Gary Wang.

3. Wang’s testimony suggested Bankman-Fried prioritized Bahamian authorities over FTX’s in-house and U.S. bankruptcy counsel due to the former's perceived friendliness.

4. The defense will argue that Bankman-Fried acted in the best interests of FTX customers, believing Bahamian authorities were acting more favorably towards them.

Read Next: Crypto Industry, Wake Up And Smell The Coffee, Your Security Is A Mess

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