Sam Bankman-Fried (SBF), the former billionaire Founder of FTX, took the stand in his ongoing fraud trial. However, his testimony was delivered outside the jury's presence, as the presiding judge sought to determine the admissibility of certain portions of his statements.

The move followed the completion of the prosecution's case, which accused SBF of embezzling billions of dollars from customers. Reuters reported that the defense aimed to shed light on the role of FTX's lawyers in the company's decision-making processes.

Sam Bankman-Fried Challenges Fraud Charges

Notably, SBF's testimony began with a discussion of FTX's use of encrypted messaging platforms, such as Signal and Slack. He maintained that using these platforms was consistent with FTX's policies. However, prosecutors contended that these platforms were employed to conceal illicit activities.

SBF faces charges of two counts of fraud and five counts of conspiracy. If found guilty, he could face a long prison sentence. Prosecutors have alleged that the misappropriated funds were used to support his crypto-focused hedge fund, Alameda Research.

The prosecution rested its case after 12 days of testimony, with FTX's former executives testifying that SBF directed them to divert customers' funds to the hedge fund and misled investors and lenders. SBF's decision to testify allows prosecutors to cross-examine him regarding these allegations.

After the prosecution rested, the defense requested that SBF be acquitted before the case went to the jury, arguing that prosecutors had not established "viable legal theories" of wire fraud, Reuters reported. However, this request was denied by Judge Lewis Kaplan.

Challenging Legal Theories

The defense began its case by calling two key witnesses. Krystal Rolle, SBF's lawyer in the Bahamas, testified about the authorities in the Bahamas directing SBF to surrender remaining assets to regulators in the country after FTX declared bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term.

Joseph Pimbley, a database expert, testified that most of FTX's customers had accounts allowing their funds to be lent to other users. When asked if he took comfort from the fact that lawyers structured the loans, SBF responded positively, emphasizing their role in the decision-making process.

Legal experts have noted that, while unconventional, SBF's decision to testify might be strategically sound, given the testimonies against him by insiders. SBF has consistently maintained that while he made mistakes while managing FTX, he never intended to misappropriate funds.