Assistant U.S. Attorney Danielle Sassoon continued Sam Bankman-Fried’s cross-examination on Tuesday, questioning the FTX founder’s relationship with the Bahamian government and Alameda Research’s use of the exchange’s customer funds.
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- Sassoon asked Bankman-Fried about his “cozy relationship” with Bahamian regulators, including an instance when Davis and his wife received tickets to a Miami Heat basketball game at the then-FTX Arena (now called the Kaseya Center), according to a live blog of the trial from court reporting organization Inner City Press.
- Bankman-Fried said he recalled their visit but claimed he didn’t know where they sat or how they got their tickets. Sassoon then showed a message from a chat in which Bankman-Fried stated that they used FTX’s seats.
- Sassoon also highlighted that Bankman-Fried talked to Davis about paying off the Bahamian national debt, to which Bankman-Fried replied: “I don’t remember that.”
- Bankman-Fried admitted that he attended a dinner with Bahamas Prime Minister Philip Davis, along with former U.S. President Bill Clinton and former U.K. Prime Minister Tony Blair.
- Bankman-Fried’s cross-examination on Tuesday was the fourth and final day of his testimony in his criminal trial that began on Oct. 4.
- FTX filed for bankruptcy in the U.S. on Nov. 11, 2022 with over 100 affiliates. Bankman-Fried has been charged with seven counts of wire fraud and money laundering and faces a maximum of 115 years in prison if convicted. He has pleaded not guilty to the charges.
- During the redirect examination on Tuesday, Bankman-Fried’s lead attorney Mark Cohen asked his defendant to expand on FTX’s risk engine, which was the exchange’s liquidation system used for risk management.
- “That was a messy situation,” responded Bankman-Fried, “Gary, Nishad and Ryan Salame told me an account could be trying to exploit FTX. I overrode the risk procedures.”
- Closing arguments in Bankman-Fried’s trial are scheduled to start Wednesday.
See related article: Crypto trust on trial: Bankman-Fried faces judgment