The Testimony of Can Sun Reveals More Details about Missing Funds
Can Sun, the former General Counsel at FTX, provided testimony during the trial of Sam Bankman-Fried. He revealed that $7 billion was missing from FTX’s accounts when the exchange faced a liquidity crunch due to a bank run. Sun explained that FTX had reached out to Binance and Apollo Global Management for help but couldn’t legally justify the missing funds. He told Bankman-Fried that there were no legal justifications and was surprised by his nonchalant response. This testimony supports the prosecution’s proposed instruction to the jury regarding disclaimers in contracts.
Prosecution’s Concerns and Proposed Instruction
In a court document filed on October 19, the prosecution stated that Can Sun’s testimony supports their proposed instruction to the jury. They warned the jury to disregard any clauses or disclaimers in the investment contract, as they should not render any misrepresentation immaterial as a matter of law. The defense could argue that investors should have been aware of the company’s terms of service, which mentioned the potential loss of funds due to cryptocurrency volatility.
Conclusion and Future Proceedings
The prosecution called its last two witnesses on October 19, and the trial is scheduled to continue on October 26 with the defense’s opening statements. It remains to be seen how Sam Bankman-Fried and his lawyers will proceed or if they will present a defense at all.
Hot Take: The Implications of Can Sun’s Testimony
Can Sun’s testimony during Sam Bankman-Fried’s trial provides further evidence of the missing funds from FTX and highlights Bankman-Fried’s nonchalant response. This strengthens the prosecution’s case against him and supports their proposed instruction to the jury regarding disclaimers in contracts. The defense may face challenges in arguing that investors should have been aware of the risks stated in the company’s terms of service. As the trial continues, it will be interesting to see how Bankman-Fried and his lawyers navigate this evidence and present their defense, if any.
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