- Witnesses will share their expectations and interactions with the defendant.
- Testimonies are crucial to understanding FTX’s treatment of customer assets.
As the highly anticipated trial against former crypto executive Sam Bankman-Fried begins this week, federal prosecutors intend to have former FTX customers, investors, and employees testify in the case.
The Department of Justice (DOJ) has filed two letters outlining its intent to summon various individuals to testify in the trial against Bankman-Fried. These witnesses include former FTX customers and investors who held shares at the exchange. Their testimony will provide valuable perspectives on how they expected FTX to handle their funds.
In addition, cooperating witnesses, individuals with direct involvement in Bankman-Fried’s activities, will testify about their interactions with him and their understanding of his statements and actions. Assistant U.S. Attorney Thane Rehn highlighted the relevance of these testimonies, stating that they directly relate to the contentious issues in the trial.
The DOJ’s plan includes calling retail customers who transferred substantial assets, amounting to tens of thousands of dollars, to FTX. Additionally, institutional clients who entrusted FTX with tens of millions of dollars worth of assets will also provide their accounts.
However, the letters did not disclose the identities of these potential witnesses or specify their numbers. It was mentioned, though, that each customer witness is likely to testify for less than 30 minutes and may not require extensive exhibits.
Cooperating Witnesses
The DOJ identified three cooperating witnesses, all of whom have pleaded guilty to charges linked to the exchange. These witnesses include former FTX Chief Technology Officer Gary Wang, former FTX Head of Engineering Nishad Singh, and former Alameda Research CEO Caroline Ellison. They will provide accounts of their involvement with FTX and testify against Bankman-Fried. Another former FTX executive, Ryan Salame, has pleaded guilty to charges but has not yet agreed to testify publicly.
Sam Bankman-Fried’s legal is centered on allegations of fraud involving more than $8 billion from FTX customers before the company filed for bankruptcy protection. The case has been described as a “complete failure of corporate control” by the new FTX CEO, John Ray, who is overseeing the bankruptcy proceedings.
