As the high-stakes fraud trial of Sam Bankman-Fried, the infamous cryptocurrency magnate, draws to a close, the prosecution has made its final arguments, accusing the defendant of repeated perjury during his testimony.
Bankman-Fried, who chose to testify in his own defense, a move considered unusual in criminal cases, could face a more severe sentence if found guilty and if the judge concurs with the prosecution's claim of perjury. The sentencing guideline is already severe, with a potential maximum of 110 years in prison.
Assistant U.S. Attorney Nicholas Roos, who delivered the prosecution's closing arguments, observed that Bankman-Fried seemed more at ease when responding to his own attorney's questions. However, he appeared significantly more hesitant and equivocal when cross-examined by the prosecution.
According to Business Insider, Roos queried the jury, "Did you notice his testimony on Friday was smooth, like he rehearsed a lot?" He further noted that Bankman-Fried claimed he 'couldn't recall' the answers to questions more than 140 times when questioned by U.S. Attorney Danielle Sassoon.
Roos accused Bankman-Fried of lying about both significant and minor matters, stating, "He approached every question like up was down and down was up." He emphasized that the case was not about complex issues like cryptocurrency, hedging, or investing, but about deception, lies, stealing, and greed.
The prosecution managed to turn three members of Bankman-Fried's inner circle: Caroline Ellison, Gary Wang, and Nashad Singh. These individuals pleaded guilty to conspiring with Bankman-Fried to defraud customers, admitting they knew they were doing something wrong by misusing customer funds.
Roos accused Bankman-Fried of shaping his testimony to conveniently exclude himself from key moments after hearing their testimonies in court. He stated, "You would have to ignore the testimony of his partners in crime." He further argued that Bankman-Fried was the only one with the motive to set up a secret system for Alameda to borrow unlimited amounts of FTX customer money.
Reuters reported that prosecutor Nicolas Roos told the jury, "This was a pyramid of deceit built by the defendant on a foundation of lies and false promises, all to get money." He warned the jury that there was no doubt that billions of dollars of customer money were used to pay off Alameda's lenders, make speculative investments, and donate to U.S. political candidates. The dispute in the case revolves around what Bankman-Fried knew about the use of customer money and whether it was wrong.
Roos told the jurors, "He took the money. He knew it was wrong. He did it anyway, because he thought he could walk his way out of it and talk his way out of it. And today, with you, that ends."
Under questioning by his own legal counsel, Bankman-Fried managed to portray himself as a well-intentioned, overworked entrepreneur. Every incriminating aspect of the relationship between FTX and Alameda had a logical business explanation.
However, under cross-examination by the prosecution, Bankman-Fried appeared more evasive and forgetful. When asked about the events leading up to the FTX collapse or public comments made in the aftermath, Bankman-Fried often claimed he could not remember or gave noncommittal responses.
Judge Lewis Kaplan reprimanded Bankman-Fried on several occasions for not answering the questions posed. Joshua Naftalis, a former prosecutor, stated, "The problem is, he didn't come out clean. The government was able to land blow after blow after blow in an almost mechanical exercise designed both to imply Bankman-Fried is untrustworthy and cast itself as an honest broker of the facts."
Bankman-Fried, the disgraced former billionaire, was bound to struggle on the stand, having backed himself into a corner long before the trial began. He had given numerous media interviews, appeared on podcasts, tweeted incessantly, started his own Substack, and submitted written testimony to Congress around the time of his arrest last December. Much of this material resurfaced at trial as government exhibits.
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