{"id":5808,"date":"2023-10-27T04:40:59","date_gmt":"2023-10-27T04:40:59","guid":{"rendered":"https:\/\/infundpros.com\/markets\/crypto\/sbf-testifies-in-hearing-claims-alameda-research-had-right-to-borrow-funds\/"},"modified":"2023-10-27T04:41:00","modified_gmt":"2023-10-27T04:41:00","slug":"sbf-testifies-in-hearing-claims-alameda-research-had-right-to-borrow-funds","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=5808","title":{"rendered":"SBF Testifies in Hearing, Claims Alameda Research had Right to \u201cBorrow\u201d Funds"},"content":{"rendered":"
\n

.

Disgraced FTX founder Sam Bankman-Fried took the stand for the first time in his landmark fraud trial without the jury present.<\/p>\n

With numerous pieces of evidence and lines of testimony in contention between the prosecution and the defense, Judge Kaplan sent the jury home early Thursday in order to hammer out which arguments may be presented to them.\n<\/p>\n

A missing piece of evidence<\/h2>\n

\nIn the defense\u2019s direct examination, Bankman-Fried admitted to using encrypted messaging due to \u201csecurity threats\u201d and being concerned about \u201cpotentially vulnerable\u201d information being leaked.<\/p>\n

\u201cThere were constant attempts to hack FTX,\u201d Bankman-Fried said.<\/p>\n

Moreover, Bankman-Fried revealed that FTX had a document retention policy that required certain information to be maintained or deleted. He then testified that he believed he acted in accordance with this policy when he \u201ctoggled on\u201d Signal\u2019s auto-deletion feature. However, he \u201cproactively disabled\u201d this feature \u201cfor a variety of reasons I understood to be coming from regulators\u201d following FTX\u2019s collapse.<\/p>\n

When Judge Kaplan questioned where a copy was of this document, the prosecution revealed they did not have it, despite Bankman-Fried centering much of his testimony around it.\n<\/p>\n

Terms of service controversy<\/h2>\n

\nMoreover, he stated that FTX had a difficult time getting a bank account and was required to use Alameda Research and its subsidiaries as part of a \u201cpayment agent agreement.\u201d<\/p>\n

Bankman-Fried further testified that Alameda Research was permitted to borrow FTX funds according to the company\u2019s terms of service \u201cin many circumstances.\u201d<\/p>\n

However, he admitted that he \u201cskimmed\u201d over parts of FTX\u2019s terms of service while largely placing responsibility on FTX\u2019s general counsel.<\/p>\n

When the prosecution pushed for specific details regarding what conversations Bankman-Fried may have had with his legal counsel, Bankman-Fried skirted around the questions.\n<\/p>\n

Bankman-Fried\u2019s long-awaited cross-examination<\/h2>\n

\nAssistant U.S. Attorney Danielle Sassoon put on an impressive hours-long cross-examination that saw Bankman-Fried hesitate over contentious lines of testimony.<\/p>\n

When asked if Alameda Research was permitted to use customer funds, Bankman-Fried stated, \u201cI wouldn\u2019t phrase it that way, but if that\u2019s the question you\u2019re asking, then yes.\u201d<\/p>\n

When Judge Kaplan sustained an objection from the defense against the prosecution asking whether it was okay to embezzle customer funds, Bankman-Fried continued on by stating it wasn\u2019t. When Judge Kaplan informed him he didn\u2019t need to answer the question, the fallen \u201cking of crypto\u201d said, \u201cI felt like I had to answer that one.\u201d<\/p>\n

Moreover, throughout Bankman-Fried\u2019s testimony, Judge Kaplan became upset over the defendant\u2019s use of \u201cvague generalities\u201d without straightforwardly answering the question.<\/p>\n

In a particularly tense moment, Judge Kaplan demanded Bankman-Fried to \u00a0\u201clisten to the question and answer the question directly.\u201d<\/p>\n

At one point, Kaplan stated that \u201cthe witness has what I\u2019ll simply call an interesting way of answering questions.\u201d<\/p>\n

Bankman-Fried\u2019s formal testimony is expected to begin in front of the jury when the trial reconvenes tomorrow morning.<\/p>\n

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. Disgraced FTX founder Sam Bankman-Fried took the stand for the first time in his landmark fraud trial without the jury present….<\/p>\n","protected":false},"author":1,"featured_media":5809,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[],"class_list":{"0":"post-5808","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-crypto"},"yoast_head":"\nSBF Testifies in Hearing, Claims Alameda Research had Right to \u201cBorrow\u201d Funds | inFundPros<\/title>\n<meta name=\"description\" content=\". Disgraced FTX founder Sam Bankman-Fried took the stand for the first time in his landmark fraud trial without the jury present. 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