Testimony From SBF's Inner Circle May Be Used Against Him

Testimony from FTX founder Sam Bankman-Fried’s “trusted inner circle” of former executives at his collapsed cryptocurrency empire will be used to prove at an October trial that he misappropriated billions of dollars from his investors to fuel his businesses, make illegal campaign contributions, and enrich himself, prosecutors said, Larry Neumeister reported for the Associated Press (AP).

Photo Insert: There is reportedly probable cause to believe SBF tried to tamper with witness testimony at least twice since his December arrest.

Prosecutors made the assertions in papers filed in Manhattan federal court, where Bankman-Fried is charged with defrauding investors in his businesses and illegally diverting millions of dollars worth of cryptocurrency from customers using his FTX exchange.

He has pleaded not guilty.

The court filing, in which prosecutors describe evidence they plan to present to jurors, came three days after Bankman-Fried was sent to a federal jail in Brooklyn to await trial by Judge Lewis A.

Kaplan, who said there was probable cause to believe he had tried to tamper with witness testimony at least twice since his December arrest.

It also came on the same day that prosecutors filed a streamlined indictment that contains the seven charges Bankman-Fried faces at the Oct. 2 trial — but there’s no longer a campaign finance charge for now, though it could go to trial later if they are found to conform with the terms of an extradition treaty with the Bahamas.

Late Monday, Bankman-Fried’s lawyers filed their own court papers related to trial evidence.

In them, they asked that the trial judge exclude evidence about the FTX bankruptcy, the solvency of FTC and its affiliated trading platform, Alameda Research, and their ability to pay customers back.

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