Sam Bankman-Fried, Court Appearance In Fraud Case

Former FTX CEO Sam Bankman-Fried gave his testimony in a trial related to fraud allegations, in a hearing without jurors. According to reports from the courtroom, discussions and communication data on the messaging app Signal regarding the presence of information at FTX were brought up during the hearing. Sam Bankman-Fried stated that he acted in accordance with company policies and that the chats on Signal were not set to auto-delete. SBF's lawyer, Mark Cohen, asked the former CEO, "Why did you turn off auto-deletion?" SBF replied, "I had received word from regulators."

Cohen also brought up North Dimension, which was alleged to have been used to launder customer funds through Alameda Research. According to SBF's statement, the former officer of the company, Dan Friedberg, provided him with the documents that enabled the company's establishment, and SBF signed them without asking any questions. Cohen asked SBF, "Did you believe it was legal to receive funds from FTX through Alameda?" SBF replied, "Yes."

SBF explained that he was the CEO of both Alameda and FTX during the formation of North Dimension, and at that time, FTX did not have a bank account. One of the crucial points of the case was whether the FTX CEO used customer funds to finance Alameda. SBF said he had been in contact with Fenwick & West and FTX's former general counsel, Can Sun, regarding this matter.

Sam Bankman-Fried continues to deny the charges against him and is expected to face new charges in March 2024.