NASSAU, BAHAMAS- FTX founder Sam Bankman-Fried faced intense questioning from US prosecutors at his fraud trial on Tuesday regarding what they described as his ‘cozy’ relationship with Bahamian government officials.
During the second day of cross-examination at Bankman-Fried’s high-profile fraud trial in a Manhattan court, US prosecutors sought to establish a connection between the favors Bankman-Fried did for government officials and his decision to permit FTX customers in the Bahamas to withdraw their funds, despite halting withdrawals for customers elsewhere last November amid the company’s collapse.
Bankman-Fried, who stands accused of fraud and conspiracy, denied offering to pay off the Bahamas’ $11 billion national debt and also stated that he couldn’t recall whether he provided courtside seats at a Miami Heat game to Prime Minister Philip Davis and his wife Ann Marie.
Assistant U.S. Attorney Danielle Sassoon presented a text message in which Bankman-Fried had informed colleagues that the couple had sat courtside at a game. Additionally, the prosecutor inquired about Bankman-Fried’s rationale for allowing FTX customers in the Bahamas to withdraw funds after suspending withdrawals for customers in other locations. Bankman-Fried claimed that he thought Bahamian regulators had suggested this course of action.
Bankman-Fried is accused of orchestrating one of the largest frauds in U.S. history. The accusations revolve around the alleged diversion of billions of dollars from client accounts for personal use. Bankman-Fried’s purported transgressions include making risky trades at his cryptocurrency hedge fund, Alameda Research, embarking on lavish spending sprees, and engaging in celebrity endorsement deals. He also stands accused of making illegal donations to lawmakers as part of a plan to buy power and influence in the realm of cryptocurrency regulation.
