In the ongoing trial of FTX founder, Sam Bankman-Fried, his lawyer's cross-examination of the government's key witness, Caroline Ellison, took an unexpected turn yesterday. The defense team's strategy remained veiled as the lawyer meandered through questioning, leaving both the judge and the public intrigued.
Over the course of the previous two days, Ellison testified that Bankman-Fried had instructed her on multiple occasions to use funds from FTX customer accounts for investments and trading strategies at Alameda Research, Bankman-Fried's cryptocurrency hedge fund. During her tenure as CEO of Alameda, which coincided with the collapse of both Alameda and FTX in November of last year, Ellison found herself repeatedly tapping into customer deposits at FTX to address various issues at the hedge fund and the exchange.
According to Ellison's testimony, FTX deposits were withdrawn for purposes such as funding new investments, making political donations, and concealing significant losses on Alameda's balance sheet. All these actions were allegedly directed by Bankman-Fried himself.
It is worth noting that Ellison, now 28, pleaded guilty to fraud charges in December. This occurred after Bankman-Fried's extradition from the Bahamas to the United States. At only 31 years old, Bankman-Fried served as the majority owner and CEO of FTX until the exchange filed for bankruptcy on November 11. Currently, he has entered a plea of not guilty to the fraud charges.
The courtroom awaits further developments in this high-profile trial as the defense team's strategy continues to puzzle onlookers.
Bankman-Fried's Defense Attorney Struggles in Cross-Examination
Bankman-Fried's lead defense attorney, Mark Cohen, had the daunting task of attempting to shift the blame for the issues at Alameda to Ellison. In his opening statement, Cohen asserted that Bankman-Fried was not guilty of fraud but was instead trying to fix the mess that his subordinates had largely created.
However, Cohen appeared to struggle during his questioning of Ellison, failing to effectively challenge her testimony. He frequently changed topics and dates of discussion, often seemingly at random.
There were moments when Cohen had to apologize for referencing the wrong document, and at other times, he paused because he seemed to have lost his place.
Judge Lewis A. Kaplan had to intervene multiple times, asking Cohen to clarify the direction of his questions or the specific subject he was addressing.
After an hour of cross-examination, Cohen suggested taking a break, stating, "Maybe this is a good time for a break."
Initially, Bankman-Fried was confined to his parents' home in Palo Alto, California, as part of a $250 million bond agreement. However, he has been in jail since August after Judge Kaplan determined that he had attempted to improperly influence potential witnesses, including Ellison.
PREVIOUS POST
