The disgraced entrepreneur Sam Bankman-Fried – who was dubbed ‘The King of Crypto’ – says he acted on legal advice using FTX customer deposits to fund his other business, Alameda Research.
The former ‘King of Crypto’ Sam Bankman-Fried has insisted he acted on legal advice.
The 31-year-old entrepreneur is currently on trial in a New York federal court answering on a string of charges – including fraud, money laundering and illegal and, if convicted, faces decades in prison- in relation to allegedly stealing billions of dollars from his cryptocurrency exchange FTX to fund his other company Alameda Research, among other crimes.
His lawyer, Mark Cohen, asked Sam: “Did you take comfort from the fact that lawyers had structured the loans?”
Sam – who pleaded not guilty to two counts of fraud and five counts of conspiracy – responded: “Yeah, of course.”
Sam – who was testifying without the jury present so Judge Lewis Kaplan could decide what part of it was admissible – went to to add that he trusted the lawyers he had on hand to make applications for accounts for corporate affairs.
He answered: “I trusted that they were proper forms.”
During the cross-examination, Sam was unable to highlight any particular moment where lawyers gave the OK to his conduct.
Sam – whose former colleagues Caroline Ellison, 28, Gary Wang, 31, and others have all pleaded guilty and are cooperating with the proceedings into him – was also asked if he thought that Alameda was able to spend customer deposits held within FTX.
He said: “I wouldn’t phrase it that way, but I think the answer to the question I think you’re trying to ask is ‘yes.’ “
Sam – who was accused by the SEC of committing of the biggest frauds in American history – was arrested in December last year after there was an $8 billion hole in FTX’s accounting, and it was suggested he had potentially used the money for other purposes, including donating to both the Democrat and Republican parties.
Ex FTX CEO Sam Bankman-Fried says he acted on legal advice before being charged with fraud
