Bankman-Fried’s legal team, led by Mark Cohen and Christian Everdell, has encountered difficulties in presenting a coherent narrative to the jurors.
FTX co-founder Sam Bankman-Fried‘s trial is nearing its conclusion, with the prosecution set to conclude their case on October 26 after nearly 20 testimonies. The prosecution has called upon a wide range of witnesses over the past three weeks, including former FTX employees, customers, investors, government officials, and law enforcement agents.
FTX Co-founder’s Trial
The central argument of the case revolves around the allegation that Bankman-Fried intentionally deceived these parties and played a role in the events leading to the $8 billion discrepancy between FTX and Alameda Research in November 2022.
On the other hand, Bankman-Fried’s defense team has not yet confirmed whether they will present a case. If they do choose to present a defense, it will commence on October 26.
Bankman-Fried’s legal team, led by Mark Cohen and Christian Everdell, has encountered difficulties in presenting a coherent narrative to the jurors. Their challenges included missing crucial arguments during cross-examinations of Bankman-Fried’s former close associates, which included Caroline Ellison, Nishad Singh, Adam Yedidia, and Gary Wang. These individuals, cooperating with the government, accused Bankman-Fried of instructing them to engage in unlawful activities.
An attorney who observed the trial noted that when the government initiates a case, there’s a 95% likelihood of securing an indictment, highlighting the substantial hurdle facing the defense. Nevertheless, the prosecutors bear the responsibility of providing evidence to substantiate the alleged crimes.
Furthermore, over the past few days, FTX’s former general counsel, Can Sun, provided a spreadsheet that was utilized to monitor $2.1 billion in loans extended to Bankman-Fried and other executives. During his testimony, Can Sun revealed that he had no knowledge of the exchange’s mingling of funds with Alameda. It’s worth noting that he is cooperating with the government in the ongoing case.
FTX Creditors Claim Selling at 50c
The market for FTX creditor claims is gaining momentum, with reports of some claims selling for over 50 cents on the dollar. Thomas Braziel, a partner at 117 Partners, a firm specializing in crypto bankruptcy claims, revealed that a claim exceeding $20 million recently went for a price range of 52 to 53 cents in an auction on October 20.
Braziel emphasized that only the highest-quality claims tend to reach such prices. Smaller claims ranging from $500,000 to $800,000 and above are trading in the range of high 30 cents to low 40 cents. This trend seems to be influenced by recent clawback efforts by the bankrupt crypto exchange and capital-raising endeavors of a previously invested company.
While the interest in FTX claims is on the rise, Braziel noted that there are still some lingering concerns. However, the upward trend in claim valuations remains a positive sign for creditors. Braziel commented, “There’s still a lot to iron out. KYC and AML issues are still popping up.”
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
