A Blow to Bankman-Fried’s Lawyers
A New York district judge has denied a request from Sam Bankman-Fried’s lawyers to reconsider a previous order blocking the inclusion of evidence related to the recovery of assets in the FTX bankruptcy. The judge stated that it was irrelevant whether Bankman-Fried intended to repay the misappropriated funds because the offense was considered complete with an immediate intent to defraud. Additionally, the judge dismissed the argument that the lack of crypto regulation in the U.S. could be presented as evidence, deeming it of minimal probative value and potentially confusing for the jury.
Reconsideration Granted with a Clarification
The judge did, however, grant one reconsideration regarding Bankman-Fried’s charitable giving, allowing it to be presented as admissible evidence as long as it serves a proper purpose and not an attempt to prove a lack of propensity to commit a crime or show goodwill. Any potential controversies regarding specific questions will be ruled upon accordingly by the court.
The Trial Continues
Former CEO of Alameda Research, Caroline Ellison, is currently testifying in court. She revealed that Bankman-Fried authorized the borrowing of FTX customer funds by Alameda, its sister trading firm. Testimony also indicated that Ellison often deferred to her ex-boyfriend on important matters such as loan repayments, capital allocation for investments, and financial disclosures. Ellison’s testimony will continue on Wednesday.
Hot Take: Bankman-Fried Faces Legal Challenges
Sam Bankman-Fried’s legal team has faced setbacks in his trial as a New York district judge denied their request to include evidence related to asset recovery and dismissed the lack of crypto regulation argument. However, there was a partial victory with regards to presenting charitable giving as admissible evidence. The trial continues with Caroline Ellison’s testimony shedding light on Bankman-Fried’s involvement in the borrowing of customer funds. As the trial progresses, it remains to be seen how these legal challenges will impact the final outcome for Bankman-Fried.
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