The Disgraced Founder of FTX Shares Legal Defense Strategy
In a 15,000-word document obtained by The New York Times, Sam Bankman-Fried (SBF), the founder of the failed crypto exchange FTX, presented what appears to be his legal defense strategy for his upcoming criminal trial. SBF expressed doubts about Caroline Ellison, the former CEO of Alameda Research, who he believed was not suitable for the role due to her avoidance of discussions about risk management.
“She continually avoided talking about risk management — dodging my suggestions — until it was too late. Every time that I reached out with suggestions, it just made her feel worse. I’m sure that being exes didn’t help.”
Sam Bankman-Fried
Bankman-Fried also criticized Sullivan & Cromwell, the lead bankruptcy counsel for FTX, accusing them of orchestrating a narrative that portrayed him as responsible for misappropriation of customer funds. His top advisers have pleaded guilty to fraud charges, while one of his former co-executives has not been charged.
SBF’s Trial and Denial of Charges
Sam Bankman-Fried is scheduled to stand trial on October 3 in Manhattan. Despite his former associates striking plea deals with prosecutors, he maintains his innocence and denies all charges against him, including fraud.
Hot Take: The Defense Strategy Unveiled
Sam Bankman-Fried has laid out his defense strategy in a lengthy document ahead of his trial next month. He raises concerns about Caroline Ellison’s ability to manage risk and criticizes Sullivan & Cromwell for their portrayal of him as responsible for misusing customer funds. While his former colleagues have pleaded guilty to fraud charges, Bankman-Fried maintains his innocence. The document offers insight into his perspective and sets the stage for what is likely to be a contentious trial. As the trial approaches, the crypto community awaits the outcome, which could have significant implications for the future of FTX and the reputation of its founder.
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