Bankman-Fried Will Take Stand at His Fraud Trial

FTX founder Sam Bankman-Fried is reportedly planning to testify in his own fraud trial.

Bankman-Fried’s attorney revealed that information in a conference call Wednesday (Oct. 25), according to a report by NBC News. 

As this report noted, the decision is considered a risky one, as it will subject Bankman-Fried to cross-examination by federal prosecutors, who accuse him of masterminding FTX’s multi-billion dollar collapse last year.

According to NBC, Bankman-Fried’s decision to take the stand came after his lawyers reached an agreement with prosecutors that will provide him with the ADHD medication he needs. Defense attorneys had argued that Bankman-Fried could not properly take part in his defense without access to this medication.

Bankman-Fried, 31, is charged with multiple counts of fraud and money laundering tied to his role in the downfall of FTX, which had been among the largest and most well-respected crypto exchanges in the world.

Prosecutors allege that Bankman-Fried used the company as a personal piggy bank, pilfering customer funds to pay for real estate, make political contributions and score celebrity endorsement deals.

Several of Bankman-Fried’s lieutenants have already pleaded guilty and testified for the prosecution, among them Gary Wang, the FTX co-founder, FTX engineering director Nishad Singh and Caroline Ellison, Bankman-Fried’s one-time romantic partner and former CEO of sister firm Alameda Research.

As noted by PYMNTS on Tuesday (Oct. 25), Bankman-Fried plans to call an expert witness to challenge the testimonies of these key witnesses.

Joseph Pimbley, of litigation consulting firm PF2 Securities, is set to counter claims by Ellison, Wang and Singh, and by former FTX employee Adam Yedidia about the financial ties between FTX and Alameda Research.

In a letter to the judge, Bankman-Fried’s legal team said Pimbley would rely on FTX database information to present his findings, with his testimony focusing on establishing a definitive timeline for Alameda’s line of credit with FTX.

Bankman-Fried’s trial is set to resume Thursday (Oct. 26) following a five-day break. He faces what could amount to a life sentence if convicted.