In a recent CNBC report, it has been revealed that indicted FTX founder Sam Bankman-Fried will take the stand in his defense, as confirmed by his lawyer.
This decision, while seen as a risky maneuver, will subject Bankman-Fried to cross-examination by federal prosecutors.
FTX Founder Set To Face Prosecution
Bankman-Fried’s defense team had previously argued that resolving his access to medication for Attention-Deficit / Hyperactivity Disorder (ADHD) was necessary for his full participation in the defense.
With the medication issue now resolved, the FTX founder will testify in his defense, allowing federal prosecutors to question him regarding the collapse of his cryptocurrency exchange, FTX.
Per the report, Bankman-Fried’s testimony will commence after the government concludes its case, which is expected to happen on Thursday morning. The prosecution has one remaining witness, an FBI agent who will serve as a summary witness.
In addition to Bankman-Fried, the defense plans to call three other witnesses during the trial proceedings, according to defense attorney Mark Cohen. His lawyer Mark Cohen further stated:
We’re going to put on potentially three witnesses and our client is also going to be testifying.
Legal Battle Escalates
The defense team had initially opposed the government’s request to begin their defense immediately after the prosecution rested its case. However, the court ultimately allowed the defense to proceed as planned.
While Bankman-Fried’s decision to testify provides an opportunity for his defense team to question him and present his perspective on the collapse, it also exposes him to cross-examination by federal prosecutors.
So far, as reported by Bitcoinist, the prosecution has called several top executives, including Nishad Singh and Caroline Ellison, Bankman-Fried’s former romantic partner and the former CEO of Alameda Research, to testify.
Bankman-Fried is facing charges of fraud and money laundering related to the collapse of FTX, a multi-billion dollar cryptocurrency exchange.
Allegations suggest that Bankman-Fried systematically misappropriated billions of dollars in customer assets from the exchange’s reserves to fund political contributions, real estate acquisitions, and high-profile sponsorship deals.
The government has presented substantial evidence, including Signal chats and internal documents, supporting their claims that Bankman-Fried orchestrated the utilization of customer funds.
If convicted, FTX co-founder Bankman-Fried could potentially face a sentence of up to 14 years in prison. As the trial continues, further developments and testimonies will shed light on the case, ultimately determining the outcome of this high-profile legal battle.
At present, the native token of the exchange, FTT, is exhibiting a positive trend in line with the overall market and the leadership of Bitcoin (BTC). After a prolonged period of stagnant price movement, FTT has experienced an impressive surge of 29% in the past 24 hours.
Furthermore, FTT has demonstrated notable gains across various time frames, except the one-year time frame. Throughout seven, fourteen, and thirty days, it has achieved profits of 37%, 34%, and 9%, respectively. However, it is important to note that over the past year, FTT has experienced a significant decline of 94%.
Featured image from Shutterstock, chart from TradingView.com