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☆ Sam Bankman-Fried testifies he regrets not hiring a risk management team at FTX before it collapsed and led to criminal charges against him
▼ + stars: | 2023-10-27 | by ( Katie Balevic | Jacob Shamsian | ) www.businessinsider.com time to read: +3 min

Sam Bankman-Fried was asked on the witness stand if he hired a risk management team for FTX. He lamented the lack of a risk management team at FTX, a common refrain of his as he works to deflect blame from himself in the company's catastrophic collapse. "Did you have a risk management team at FTX?" But no, we didn't," Bankman-Fried replied. Bankman-Fried testified he worked between 12 and 22 hours per day and took off one day per month to keep up with managing the growth.

Persons: Sam Bankman, Fried, —, Jane Street, Mark Cohen, FTX, Lewis Kaplan, who's, Kaplan Organizations: FTX, Prosecutors, Service, Alameda Research, US Locations: Alameda

☆ Sam Bankman-Fried testifies he 'didn't have the time' for haircuts or long-term relationship with Caroline Ellison
▼ + stars: | 2023-10-27 | by ( Jacob Shamsian | Katie Balevic | ) www.businessinsider.com time to read: +3 min

Sam Bankman-Fried addressed his breakup with Caroline Ellison on the witness stand Friday. AdvertisementAdvertisementOn the witness stand in his criminal trial Friday, Sam Bankman-Fried testified he was too busy running companies worth billions of dollars to get deeply involved in women and haircuts. One of their witnesses in the trial is Caroline Ellison, who ran Alameda as a CEO starting in mid-2021. That explanation is consistent with what Ellison herself said on the witness stand in earlier testimony. "I was kind of busy and lazy and didn't get haircuts for long periods of time," Bankman-Fried answered, sheepishly.

Persons: Sam Bankman, Fried, Caroline Ellison, —, Jane, Ellison, Mark Cohen, sheepishly, Cohen Organizations: Service, Alameda Research Locations: Manhattan, Alameda, Bankman

☆ Why Sam Bankman-Fried wanted to spend $10 million a year to put FTX name on sports stadium
▼ + stars: | 2023-10-27 | by ( Mackenzie Sigalos | ) www.cnbc.com time to read: +12 min

Prosecutors entered corroborating materials, including encrypted Signal messages and other internal documents that appear to show Bankman-Fried orchestrating the spending of FTX customer money. Similarly, Bankman-Fried testified that he believed the lavish Bahamas properties were being paid for with FTX operating cash that came from revenue and venture investments. As for the venture investments, Bankman-Fried said he thought that money was coming from Alameda's operating profits and third-party lending desks. Alameda's venture arm was renamed Clifton Bay Investments, which Bankman-Fried said was a first step in building a dedicated venture brand. When asked about loans he took from the business, Bankman-Fried said they were to pay for venture investments and political donations.

Persons: Sam Bankman, Amanda Perobelli, Fried, District Judge Lewis Kaplan, Mark Cohen, Bankman, Cohen, Sam Bankman Fried, Judge Lewis Kaplan, Elizabeth Williams, Caroline Ellison, Judge Kaplan, Jane, Banks, weren't, cryptocurrencies, FTX, Nishad Singh, Gary Wang, Singh, Wang, Prosecutors, Dan Friedberg, Fenwick, Marco Bello, Ryan Salame, Salame, Katy Perry, —, Dawn Giel Organizations: FTX, Reuters FTX, U.S, District, Stanford, Alameda Research, Elizabeth Williams Prosecutors, Massachusetts Institute of Technology, Alameda, Fenwick & West, Reuters, NFL's New, NFL's New Orleans Saints, Kansas City Chiefs, Facebook, Google, Clifton Bay Investments, Republicans Locations: Manhattan, New York City, U.S, Alameda, Bahamas, Berkeley , California, FTX, Friedberg, Miami , Florida, Miami, NFL's New Orleans, Clifton Bay, Los Angeles

watch nowLawyers for Sam Bankman-Fried late Wednesday revealed details of his planned testimony if he takes the witness stand at his FTX fraud trial. Earlier Wednesday, one of Bankman-Fried's two chief trial attorneys, Mark Cohen, said in a conference call that his client would testify as would three other people. Cohen cited specific examples where, at the guidance of FTX lawyers, Bankman-Fried adopted a policy which prosecutors argued shows his criminality. But Cohen wrote that Bankman-Fried's understanding was that these auto-deletion policies were "instituted under the guidances of lawyers." "We respectfully submit that Mr. Bankman-Fried's knowledge of industry practices regarding the use of omnibus wallets is relevant to his good faith belief that his conduct was permissible," the letter added.

Persons: Sam Bankman, Judge Lewis Kaplan, Kaplan, Mark Cohen, Cohen, Fried, Caroline Ellison, Bankman, SBF, Gary Wang, Adam Yedidia, Wang, FTX, Sun Organizations: Bahamian, Stanford, Alameda Research, Prosecutors, Bankman, Bahamas Securities Commission, Securities Commission, The Locations: Manhattan, FTX, Alameda, Bahamian, The Bahamas, United States

☆ Judge blasts Sam Bankman-Fried for 'interesting' answers on the witness stand to questions about using FTX customer funds
▼ + stars: | 2023-10-26 | by ( Katie Balevic | Jacob Shamsian | ) www.businessinsider.com time to read: +7 min

AdvertisementAdvertisement"Part of the problem is that the witness has what I'll simply call an interesting way of responding to questions," Kaplan said during the hearing. AdvertisementAdvertisementWhen Sassoon asked Bankman-Fried directly if he discussed spending FTX customer deposits with his lawyers, he took a long pause and looked down before he answered the question. Sassoon, questioning Bankman-Fried on the witness stand, asked Bankman-Fried to be more explicit about why he thought that explanation was acceptable. Asked directly by Sassoon if it was OK to steal customer funds, Bankman-Fried rejected that interpretation of events. Sassoon made that clear on Thursday as Kaplan asked for a broad timeline of the rest of the trial.

Persons: Sam Bankman, Fried, —, Lewis Kaplan, Kaplan, Mark Cohen, Danielle Sassoon, Sassoon, Bankman, Chelsea Jia Feng, I'm, Cohen, grumbled, Barbara Fried, " Cohen Organizations: Service, Alameda Research Locations: Manhattan, FTX, Alameda

☆ Sam Bankman-Fried's defense team fails to land a blow as he takes the stand
▼ + stars: | 2023-10-26 | by ( Mackenzie Sigalos | ) www.cnbc.com time to read: +3 min

Sam Bankman-Fried took the stand in a New York courtroom on Thursday, as he and his defense team auditioned their best legal material for U.S. District Judge Lewis Kaplan. Bankman-Fried, the son of two Stanford legal scholars, has pleaded not guilty in the case. Several of these witnesses have themselves pleaded guilty to multiple charges, including Bankman-Fried's ex-girlfriend Caroline Ellison, who faces a maximum sentence of 110 years for crimes committed while she was the CEO of Alameda. Given that the core issue will be intent to defraud, SBF should be portraying himself as clueless, inattentive, and in over his head. But for years he had portrayed himself as a visionary genius, and I don't expect that to change on the stand," he said.

Persons: Sam Bankman, Fried, District Judge Lewis Kaplan, Fried's, Mark Cohen, Dan Friedberg, SBF, Renato Mariotti, Bryan Cave Leighton, Caroline Ellison Organizations: U.S, District, Stanford, U.S . Justice Department's Securities, Commodities, Alameda Research, Prosecutors Locations: New York, Manhattan, Chicago, Alameda

Sam Bankman-Fried took the witness stand on Thursday after days of testimony from his inner circle. The FTX cofounder is facing seven charges of fraud over the collapse of the cryptocurrency exchange. AdvertisementAdvertisementSam Bankman-Fried took the witness stand Thursday to testify in his own defense in the criminal trial involving FTX's collapse. After briefly describing the "constant" threat of attempts to hack FTX, Bankman-Fried got into the company's document retention policy, which he said he abided by "to my knowledge." The FTX cofounder is facing seven criminal charges and has pleaded not guilty on all counts.

Persons: Sam Bankman, Fried, —, Judge Lewis Kaplan, Kaplan, Mark Cohen, Gary Wang, Caroline Ellison, Wang, FTX, Ellison, she'd Organizations: Service, FTX, Alameda Research, Alameda Locations: Alameda

Defense lawyers estimated that they would question him for about five hours after brief testimony from two other witnesses. After prosecutors rested Thursday, defense lawyers immediately asked Judge Lewis A. Kaplan to acquit Bankman-Fried on the grounds that prosecutors had failed to present sufficient evidence. Bankman-Fried was arrested in the Bahamas and extradited to the United States last December, a month after his businesses collapsed. Kaplan revoked the bail in August after concluding that Bankman-Fried had tried to influence potential trial witnesses. Since then, his lawyers have complained that Bankman-Fried has been unable to properly prepare for trial while incarcerated at a Brooklyn federal lockup.

Persons: Sam Bankman, Fried, Judge Lewis A, Kaplan, acquit, Caroline Ellison, Bankman Organizations: — Prosecutors, Alameda Research, Palo, Stanford University, Bankman, Alameda Locations: Manhattan, California, Alameda, Bahamas, United States, Palo Alto , California, Brooklyn

☆ Sam Bankman-Fried could take stand at fraud trial over FTX collapse
▼ + stars: | 2023-10-26 | by ( Luc Cohen | Thomson Reuters | Reports On The New York Federal Courts. Previously Worked As A Correspondent In Venezuela | ) www.reuters.com time to read: +3 min

Sam Bankman-Fried, the founder of bankrupt cryptocurrency exchange FTX, arrives at court as lawyers push to persuade the judge overseeing his fraud case not to jail him ahead of trial, at a courthouse in New York, U.S., August 11, 2023. Bankman-Fried has pleaded not guilty and maintained that while he made mistakes running FTX, he never intended to steal funds. They say Alameda looted FTX funds through special trading privileges on the exchange. Cohen said the defense plans to call three brief witnesses before Bankman-Fried takes the stand. Reporting by Luc Cohen in New York; Editing by Noeleen Walder and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

Persons: Sam Bankman, Eduardo Munoz, Fried, Mark Cohen, Bankman, Mark Troiano, Cohen, FTX, Luc Cohen, Noeleen Walder, Jonathan Oatis Organizations: REUTERS, Alameda Research, Thomson Locations: New York, U.S, Alameda, Manhattan

The witnesses have painted a portrait of Mr. Bankman-Fried, 31, as a controlling boss who directed them to commit fraud. She was apprehensive about the move, she said, because she knew that would mean borrowing $1 billion in FTX customer funds for the transaction. “That’s OK, I think this is really important, we have to get it done,” Mr. Bankman-Fried told Ms. Ellison, according to her testimony. At Mr. Bankman-Fried’s urging, Mr. Sun said, he ran through a few theoretical options to justify the borrowing and spending of FTX customer money. Prosecutors then played a clip from an interview that Mr. Bankman-Fried gave ABC’s “Good Morning America” days before FTX filed for bankruptcy in November.

Persons: Sam Bankman, Fried, Bankman, Caroline Ellison —, Adam Yedidia, Mr, Yedidia, FTX, ” Caroline Ellison Ms, Ellison, Ms, Gary Wang Mr, Wang, ”, coder, Nishad Singh Mr, Singh, Gabe, Gabe Bankman, ” Mr, Prosecutors, Barbara Fried, Nishad Singh, Sun, ’ Organizations: Alameda Research, Massachusetts Institute of Technology, Stanford, Mr, Prosecutors, America Locations: Bahamas, Alameda, Binance, Pandemics

Over the past three weeks, former employees and friends of Sam Bankman-Fried have testified that he orchestrated a scheme to misappropriate billions of dollars in customer money from his FTX cryptocurrency exchange, which collapsed last year. The witnesses have painted a portrait of Mr. Bankman-Fried, 31, as a controlling boss who directed them to commit fraud. They said the FTX founder had known for months that the exchange had no way of paying back at least $8 billion in customer money that was used to buy lavish real estate, invest in other crypto companies, make campaign contributions and pay back lenders to a trading firm that Mr. Bankman-Fried also controlled. Here are highlights of the testimony from several prosecution witnesses — including Mr. Bankman-Fried’s employee and on-again, off-again girlfriend, Caroline Ellison — who have been central to the case:Adam YedidiaThe first prosecution witness was Adam Yedidia, a former FTX developer who was a close friend of Mr. Bankman-Fried’s and lived with him and other associates in the Bahamas. Mr. Yedidia, who has not been charged with any crimes and testified under immunity, said Mr. Bankman-Fried had known that FTX and Alameda Research, a sister crypto trading firm, were on thin ice.

Persons: Sam Bankman, Fried, Bankman, Caroline Ellison —, Adam Yedidia, Mr, Yedidia Organizations: Alameda Research Locations: Bahamas

NEW YORK (AP) — FTX founder Sam Bankman-Fried plans to testify at his fraud trial, his lawyer told a federal judge on Wednesday, a day before the defense is set to counter testimony from former executives who say the cryptocurrency executive stole billions of dollars from his customers and investors over several years. Attorney Mark Cohen told Judge Lewis A. Kaplan that he planned to call three witnesses “and then our client is also going to be testifying” after prosecutors rest early Thursday. Even so, prosecutors and the judge later discussed the possibility that closing arguments could occur early next week if Bankman-Fried changes his mind and doesn't take the stand. That means only Bankman-Fried or other character witnesses can tell his side of the story, former prosecutors said. ___For more AP coverage of Sam Bankman-Fried and FTX: https://apnews.com/hub/sam-bankman-fried

Persons: — FTX, Sam Bankman, Fried, Mark Cohen, Judge Lewis A, Kaplan, “, ”, Cohen, Rachel Maimin, Lowenstein Sandler, Caroline Ellison, Gary Wang, Joshua Naftalis, “ It’s, Mary Organizations: Alameda Research, Pallas Partners Locations: Manhattan, Palo Alto , California, Bahamas

☆ Sam Bankman-Fried to testify in FTX fraud trial, attorney says
▼ + stars: | 2023-10-25 | by ( Rohan Goswami | In Rohangoswamicnbc | ) www.cnbc.com time to read: +2 min

FTX founder Sam Bankman-Fried will take the stand to testify in his own defense, his attorney said in a conference call Wednesday. The decision by his legal team sets him up for a cross-examination by federal prosecutors, who will be able to press him on the collapse of his crypto exchange FTX. Bankman-Fried's decision to testify came after federal prosecutors and his defense team were able to secure the alleged fraudster an adequate supply of his ADHD medication. The defense will also call three other witnesses besides Bankman-Fried to the stand, defense attorney Mark Cohen said on the call. Bankman-Fried stands accused of fraud and money laundering of his role in the collapse of the multi-billion dollar crypto exchange FTX.

Persons: Sam Bankman, Mark Cohen, Nishad Singh, Caroline Ellison, Fried, Dawn Giel Organizations: Prosecutors, Federal Bureau of, Alameda Research

Indicted FTX founder Sam Bankman-Fried leaves the United States Courthouse in New York City, U.S., July 26, 2023. Elizabeth Holmes took the stand at her criminal trial, testifying over several days that she did not intend to defraud investors in her blood-testing startup, Theranos. For Bankman-Fried to be convicted of fraud, prosecutors must show beyond a reasonable doubt that he intended to defraud FTX customers or investors. Taking the stand carries the risk that he will be confronted with those media appearances as well as his use of social media. But Bankman-Fried has a lower-than-average fear of risk, according to trial testimony.

Persons: Sam Bankman, Fried, Amr Alfiky, Willkie Farr, Gallagher, Ilene Jaroslaw, Elizabeth Holmes, Holmes, Caroline Ellison, Ellison, Mike Schachter, Schachter, Tom Barrack, Donald Trump, Jean Boustani, District Judge Lewis Kaplan, Bankman, Jody Godoy, Tom Hals, Noeleen Walder, Jonathan Oatis Organizations: United, REUTERS, Prosecutors, Alameda Research, Massachusetts Institute of Technology, Detention, U.S, District, Thomson Locations: New York City, U.S, Alameda, Lebanese, Brooklyn's, New York

☆ 11 of the biggest bombshells from Sam Bankman-Fried's FTX fraud trial
▼ + stars: | 2023-10-25 | by ( Katie Balevic | Jacob Shamsian | ) www.businessinsider.com time to read: +11 min

The stress of the scheme left a key executive 'suicidal for days'Nishad Singh testified against his former boss in court. Jane Rosenberg/ReutersNishad Singh, the head engineer at FTX, testified against Bankman-Fried and spoke to the intense pressure of the scheme. As customers began to withdraw their deposits, FTX didn't have enough liquid cash to actually give them their funds. Instead of working together to solve the issue, executives blamed each other, Singh testified. "In response, Sam said something like, 'We were bulletproof last year, but we're not bulletproof this year,'" Yedidia testified.

Persons: Sam Bankman, —, Fried, Caroline Ellison, Gary Wang, Nashad Singh, SBF, Ellison, he'd, Nishad Singh, Jane Rosenberg, Reuters Nishad Singh, Singh, I'd, Wang, FTX's, Bankman, Sam, Adam Yedidia, Yedidia, FTX didn't, FTX, Michael M, Ellison Yedidia, Caroline, Getty, Alameda's, — Ellison, Christian Drappi, Drappi, Alameda — Ellison Organizations: Service, Prosecutors, Alameda Research, Street, Reuters, Bankman, NEW, Manhattan Federal Court, Getty, FTX, MIT, Alameda Locations: Manhattan, Brooklyn, FTX, Bankman, Alameda, United States, Bahamas, New York City, China, Alameda's Hong Kong

☆ Sam Bankman-Fried's lawyers avoid challenges to 'cartoon' villain image
▼ + stars: | 2023-10-23 | by ( Luc Cohen | Thomson Reuters | Reports On The New York Federal Courts. Previously Worked As A Correspondent In Venezuela | ) www.reuters.com time to read: +5 min

Defense lawyers will have a chance to put forward a competing narrative when they present their case, beginning as soon as Thursday. A STRATEGIC CHOICEAllowing specific unfavorable accounts by prosecution witnesses to go unchallenged on cross-examination could be a strategic choice by the defense, according to experts. During opening statements, Cohen told jurors of the prosecutors: "They'd have you think he was quite the villain, or, more precisely, almost a cartoon of a villain. "It was pretty humiliating," said Singh, who has pleaded guilty to fraud charges. Ellison, who has also pleaded guilty to fraud, said Bankman-Fried told her that his signature sloppy dress and wild mop of curly locks was an "important part of FTX's image."

Persons: Sam Bankman, Andrew Kelly, Fried, Bankman, doesn't, Jordan Estes, Kramer Levin, Mark Cohen, Cohen, Rachel Maimin, Lowenstein Sandler, Sam, gooder, Nishad Singh, Singh, Caroline Ellison, Alameda's, Ellison, Luc Cohen, Will Dunham, Amy Stevens Organizations: FTX, Manhattan, REUTERS, Alameda Research, Thomson Locations: New York City, U.S, Manhattan, Washington, Alameda, New York

☆ Sam Bankman-Fried's ex-friends and top lieutenants all demolished his criminal defense from the witness stand
▼ + stars: | 2023-10-21 | by ( Jacob Shamsian | ) www.businessinsider.com time to read: +10 min

Sam Bankman-Fried's defense attorneys have argued that FTX's collapse is complicated and he didn't know everything. AdvertisementAdvertisementDuring opening statements at Sam Bankman-Fried's trial, it quickly became clear that prosecutors and his defense attorneys had very different approaches. But Bankman-Fried's attorneys may convince jurors that Bankman-Fried genuinely believed his actions were acceptable in the wild-west cryptocurrency industry. The challenge for Bankman-Fried's attorneys is to convince jurors that he didn't know about any wrongdoing. "Sam directed me to," Ellison testified.

Persons: Sam Bankman, They've, —, — Caroline Ellison, Gary Wang, Nishad Singh —, Thane Rehn, Rehn, Mark Cohen, Ellison, Cohen, FTX, Crypto, it's, Sam Bankman Fried, Craig Ruttle, Sarah Krissoff, Cozen O'Connor, Fried, Krissoff, Singh, Wang, Paul Tuchmann, Wiggin, Dana, Sam, Caroline Ellison, Eduardo Munoz Alvarez, Gary, Sun, He's Organizations: Service, Prosecutors, Alameda Research, Alameda Locations: Manhattan, Washington, Bankman, Alameda, New York, FTX, Bahamas

☆ Sam Bankman-Fried, FTX allies secretly poured $50 million into 'dark money' groups, evidence shows
▼ + stars: | 2023-10-20 | by ( Brian Schwartz | ) www.cnbc.com time to read: +4 min

The documents give the first full look at Bankman-Fried and his allies' contributions to so-called "dark money" organizations. While Bankman-Fried quietly funded more conservative dark money groups behind the scenes, he publicly cultivated a profile that was clearly aligned with the Democratic Party. Prosecutors on Monday filed into evidence a list of organizations that received money from Bankman-Fried and those close to him. The documents show that Bankman-Fried was clearly the lead "dark money" donor among the listed former FTX executives and the company itself. The list that prosecutors made public this week shows Bankman-Fried's "dark money" donations were closer to $47 million during the 2022 cycle alone.

Persons: Sam Bankman, Mitch McConnell, Chuck Schumer, Nishad Singh, FTX's, Fried, Barbara Fried, FTX, Ryan Salame, Salame, Caroline Ellison, Ellison Organizations: FTX, Democratic, Republican, Democratic Party, Washington , D.C, Prosecutors, Alameda Research, Bankman, Federal, Commission Locations: Manhattan, New York City, Ky, Washington ,, Bankman, Alameda, Washington

Prosecutors in the criminal trial against FTX founder Sam Bankman-Fried compared one of the defense's arguments to a scene in the 1994 film "Dumb and Dumber," in which actor Jim Carrey says IOUs are "as good as money." Funds also allegedly went to paying for things such as a $35 million property in the Bahamas and political donations. Customers were ultimately unable to retrieve much of their money as FTX and Alameda were simultaneously imploding. In a footnote, the prosecution writes, "A popular movie from the 1990s illustrates the point: a briefcase, once filled with money, is not the same as a briefcase later filled with IOUs." In "Dumb and Dumber," when the briefcase reaches its owner, it's filled with paper.

Persons: Sam Bankman, Jim Carrey, IOUs, Judge Lewis Kaplan, who's, Carrey, Jeff Daniels, transact, Lloyd Christmas Organizations: Prosecutors, FTX, Manhattan, Southern, of, York, Alameda Research Locations: Manhattan, New York City, Colorado, Bahamas, Alameda

☆ ‘Oof’: Sam Bankman-Fried’s Trial Reveals Inside Details of How FTX Died
▼ + stars: | 2023-10-20 | by ( David Yaffe-Bellany | More About David Yaffe-Bellany | ) www.nytimes.com time to read: +1 min

On the morning of Nov. 6, Nishad Singh, a top executive at the cryptocurrency exchange FTX, sent a message in a group chat with two senior colleagues. Caroline Ellison, who ran FTX’s sister hedge fund, Alameda Research, replied with an image of a sad face. The company is bankrupt, and Mr. Singh and Ms. Ellison, both 28, have pleaded guilty to fraud and testified in court against their onetime friend. At the trial, prosecutors have used that testimony as the basis for an unvarnished look inside FTX’s rapid unraveling — a frantic week in November that ended in one of the largest corporate collapses in recent history. The prosecutors have even put up a November calendar to help jurors follow the fast-paced sequence of events.

Persons: Nishad Singh, Caroline Ellison, Sam Bankman, Singh, Ellison Organizations: Alameda Research Locations: Manhattan

☆ Will Sam Bankman-Fried take the witness stand? It would be dangerous — but he has little to lose.
▼ + stars: | 2023-10-19 | by ( Jacob Shamsian | Katie Balevic | ) www.businessinsider.com time to read: +12 min

Sam Bankman-Fried needs to decide soon whether he'll take the witness stand in his criminal trial. AdvertisementAdvertisementCaroline Ellison testified in the trial of her ex-boyfriend, Sam Bankman-Fried JANE ROSENBERGFor that reason, the case against Bankman-Fried rests on the credibility of his alleged co-conspirators. In their own questioning of the cooperating witnesses, prosecutors have encouraged them to be open about taking responsibility for their crimes. Court sketch of Sam Bankman-Fried on the first day of his trial JANE ROSENBERG/ReutersIf Bankman-Fried takes the stand, he'll be cross-examined by prosecutors. If Bankman-Fried takes the stand, prosecutors will almost certainly point to more material and catch him in any contradictions.

Persons: Sam Bankman, he'll, he's, —, They're, Fried, Mark Cohen, Lewis Kaplan, who's, Cohen, He's, Caroline Ellison, Gary Wang, Nashad Singh, Sarah Krissoff, Cozen O'Connor, FTX, Mary Altaffer, Kaplan, Paul Tuchmann, Wiggin, Dana, Tuchmann, Adam Yedidia, Fried JANE ROSENBERG, Ellison, Wang, Singh, Bankman, Wang forthrightly, Ellison teared, slovenliness, Prosecutors —, Krissoff, JANE ROSENBERG, hedged, didn't, Judge Kaplan's, SBF Organizations: Service, Defense, US, Alameda Research, Former Alameda Research, AP, Prosecutors, Toyota Corolla, Reuters, ABC News, Alameda . Locations: Manhattan, Alameda, New York, FTX

☆ Sam Bankman-Fried sought 'justifications' for missing funds, lawyer testifies
▼ + stars: | 2023-10-19 | by ( Luc Cohen | Thomson Reuters | Reports On The New York Federal Courts. Previously Worked As A Correspondent In Venezuela | ) www.reuters.com time to read: +3 min

REUTERS/Andrew Kelly/File Photo Acquire Licensing RightsNEW YORK, Oct 19 (Reuters) - Cryptocurrency exchange FTX's former top lawyer testified on Thursday that its founder Sam Bankman-Fried asked him to come up with "legal justifications" for why it was missing $7 billion in customer funds four days before the company declared bankruptcy. Sun said he told Bankman-Fried later that day that he could not identify any legal justifications. Sun's testimony could complicate Bankman-Fried's defense that he had a good-faith belief that Alameda's use of FTX customer funds was appropriate. They have said Bankman-Fried is considering testifying in his own defense after the prosecution rests its case on Oct. 26. Sun testified earlier on Thursday that Bankman-Fried told him that the company had kept its customer funds safe and separate from its own assets, and that he never approved the lending of FTX customer funds to Alameda Research.

Persons: Sam Bankman, Andrew Kelly, Fried, Apollo, Sun, FTX, Bankman, Danielle Sassoon, Luc Cohen, Will Dunham Organizations: FTX, Manhattan, REUTERS, Alameda Research, Thomson Locations: New York City, U.S, Bankman, Alameda, Manhattan, Bahamas, New York

☆ Sam Bankman-Fried replied 'Yep' when FTX's top lawyer told him there was no legal justification for taking customer funds, attorney testified
▼ + stars: | 2023-10-19 | by ( Katie Balevic | ) www.businessinsider.com time to read: +3 min

A top attorney for FTX testified Thursday in the trial of Sam Bankman-Fried. Can Sun said he was "shocked" by a $7 billion hole in FTX, while Sam Bankman-Fried was unsurprised. AdvertisementAdvertisementFTX's corporate attorney testified in court against his former boss, Sam Bankman-Fried, in Manhattan federal court on Thursday, sharing details about the company's bankruptcy in November 2022. Sun testified that Singh told him Bankman-Fried was unfazed when he confronted the CEO about the hole. Bankman-Fried told Singh something to the effect of: "It is what it is.

Persons: FTX, Sam Bankman, Sun, Fried, SBF, —, –, Singh, Nishad Organizations: Service, Alameda Research, Bankman, Prosecutors Locations: FTX, Manhattan, Alameda, Japan, Bahamas

☆ Read the secret Signal messages that could help put Sam Bankman-Fried behind bars
▼ + stars: | 2023-10-19 | by ( Mackenzie Sigalos | ) www.cnbc.com time to read: +16 min

Sam Bankman-Fried appears at federal court in New York on Oct. 4, 2023, in this courtroom sketch. Zoom In Icon Arrows pointing outwards Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried. In a direct appeal to Bankman-Fried, Singh wrote on Nov. 6, 2022, "one thing that'd seriously help me is if I didn't have debts." Zoom In Icon Arrows pointing outwards Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried. Zoom In Icon Arrows pointing outwards Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.

Persons: Sam Bankman, Fried, Claudia Johnson, Caroline Ellison, Gary Wang, Nishad Singh, Ryan Salame, Damian Williams, Yuki Iwamura, Ellison, Bankman, Joe Bankman, Ramnik Arora, Ryne Miller, Constance Wang, Singh, Wang, reassurances, FTX, Changpeng Zhao, he'd, Um, Sam, Binance, Zhao, it's, Sam Trabucco, Ben Xie, Michael Lewis, Lewis, Adam Yedidia, Yedidia, chares, SDNY Singh, Gabe, Salame, Michael Sadowsky, Sadowsky, FTX's, Dawn Giel Organizations: Alameda Research, Stanford, Bloomberg, Getty, Massachusetts Institute of Technology, alameda, Prime Trust Bank Locations: New York, Alameda, Manhattan, U.S, FTX, Sequoia, Alameda's, Bahamas

☆ Genesis and Gemini face civil suit alleging $1 billion fraud
▼ + stars: | 2023-10-19 | by ( Allison Morrow | ) edition.cnn.com time to read: +3 min

The lawsuit accused the companies of lying to investors and covering up more than $1 billion in losses. According to the latest lawsuit, Gemini knew that Genesis’ loans were risky and, at one point, “highly concentrated” with Bankman-Fried’s crypto trading house Alameda Research. “Gemini hid the risks of investing with Genesis, and Genesis lied to the public about its losses,” James said. Gemini’s owners, the Winklevoss twins, have said Genesis owed more than $900 million to some 340,000 customers using the Earn program. The AG’s lawsuit follows another civil action brought by the Securities and Exchange Commission, which in January sued Genesis and Gemini for offering unregistered securities through the Earn product.

Persons: Sam Bankman, —, Cameron, Tyler Winklevoss, Letitia James, James, James ’, Crypto, Cameron Winklevoss, Christopher Goodney, Gemini, Fried, “ Gemini, Genesis, ” James, Soichiro “ Michael ” Moro, Barry Silbert, DCG didn’t Organizations: CNN, New, — Gemini Trust, Genesis Global Capital, Digital Currency Group, Yorkers, Gemini Trust, Bloomberg, Getty, Alameda Research, Securities and Exchange Commission, Gemini, Genesis Locations: New York

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