Democratic megadonor Sam Bankman-Fried is set to testify at his criminal trial on Thursday, according to his lawyer.
This move opens him up to cross-examination from prosecutors regarding the collapse of his cryptocurrency exchange, FTX. Bankman-Fried is facing seven charges, including defrauding FTX customers and lenders through a scheme that diverted billions of dollars for campaign contributions, charitable donations, and real estate acquisitions.
Bankman-Fried's attorney, Mark Cohen, stated, "We are going to put on potentially three witnesses, then our client is also going to be testifying," as reported by The Wall Street Journal.
According to an August indictment, the disgraced crypto tycoon allegedly misappropriated and embezzled FTX customer deposits, using stolen funds to influence cryptocurrency regulation through over $100 million in campaign contributions to both Democrats and Republicans.
Bankman-Fried's significant financial support for Democrat-aligned causes during the 2022 midterm election cycle is also noteworthy. The Washington Post's analysis of Federal Election Commission data reveals that he contributed over $39 million, making him the second-largest individual contributor.
Caroline Ellison, Bankman-Fried's ex-girlfriend and former CEO of Alameda Research, the sister hedge fund to FTX, has accused him of instructing her to commit fraud regarding FTX and Alameda's relationship. She alleges that he established a system that allowed Alameda to withdraw unlimited funds from the cryptocurrency exchange.
Bankman-Fried's upcoming testimony will provide a crucial opportunity for prosecutors to question him directly about the allegations against him and shed light on the collapse of FTX. As the trial unfolds, more details are expected to emerge, offering a deeper understanding of the extent of the alleged fraud and its impact on the cryptocurrency industry.
Login