FTX Founder Testifies About Deleting Corporate Messages
In a closed-door testimony on October 26, Sam Bankman-Fried (SBF), the disgraced founder of FTX, attempted to explain why he deleted corporate messages without the presence of the trial’s jury. When questioned by prosecutor Danielle Sassoon, SBF claimed that he used the encrypted messaging app Signal with the approval of FTX counsel Daniel Friedberg. However, he admitted that he never sought prior approval before utilizing the app’s auto-delete feature.
SBF mentioned that he had changed his toggle on Signal to enable one week auto-delete and that this practice had been in place since 2021. When asked if he sought approval for this, SBF replied in the negative. He also stated that a document retention policy approved by Friedberg only applied to emails and not other forms of communication.
Rationale for Deleting Messages
Regarding the seven “fake” balance sheets prepared by colleague Caroline Ellison, SBF argued that deleting the messages was permissible as verbal discussions were not required to be reported. He further claimed that these messages were never shared with lawyers in accordance with FTX’s data retention policy because he was concerned about statements being taken out of context and causing embarrassment.
Hot Take: SBF’s Defense Raises Questions
Sam Bankman-Fried’s defense during his testimony about deleting corporate messages raises questions about transparency and accountability. While he claimed to have received approval from FTX counsel for using Signal, he admitted to not seeking prior approval for the app’s auto-delete feature. This raises concerns about the deliberate deletion of potentially incriminating evidence.
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