FTX Clients and Investors to Provide Testimony Against Sam Bankman-Fried
The United States Department of Justice (DOJ) has revealed its plans to call former FTX customers, investors, and staff as witnesses in the upcoming trial of Sam Bankman-Fried (SBF), the co-founder of the now-defunct FTX exchange. If found guilty of the seven counts of alleged fraud-related offenses, SBF could face up to 110 years in prison.
DOJ’s Motion to Summon Witnesses
In a letter motion submitted on September 30, the DOJ outlined its intention to summon various individuals during SBF’s trial. These individuals include FTX customers who deposited funds on the platform, FTX investors who bought shares in the company, and cooperating witnesses who have pleaded guilty to fraud conspiracy with SBF. The testimony of these witnesses is crucial for understanding their relationship with SBF and how they interpreted his statements regarding FTX’s treatment of customer assets.
FTX Team Members Expected to Testify
Some members of the FTX team, such as the Chief Technology Officer and head of Engineering, have already pleaded guilty to fraud-related charges and are expected to testify against SBF. However, it remains uncertain whether Ryan Salame, another top executive at FTX who recently took a guilty plea, will also testify against his former boss. Caroline Ellison, former Alameda Research CEO and SBF’s ex-romantic partner, is reportedly a witness after pleading guilty to involvement in SBF’s alleged offenses.
Potential Ukrainian Witness Testifying via Video Conference
The DOJ made a request on behalf of an FTX customer witness from Ukraine who lost a significant portion of his life savings deposited on FTX following the Russian invasion. Due to ongoing war and travel restrictions, the DOJ asked the judge to allow the witness to testify via a video conference. The DOJ plans to coordinate with Ukrainian officials and arrange for a US official to oversee the testimony. Although efforts are being made for overseas FTX customers to travel and testify, the circumstances of this particular witness make foreign travel effectively impossible.
Conclusion
Sam Bankman-Fried’s trial will commence on October 3, with jury selection as the first item on the schedule. The DOJ intends to call former FTX clients, investors, and staff members as witnesses to provide testimony against SBF. The testimony of these individuals will play a crucial role in understanding their relationship with SBF and how they interpreted his statements regarding FTX’s treatment of customer assets. Additionally, efforts are being made to accommodate witnesses from overseas, including a potential video conference testimony for a Ukrainian witness.
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