Search
Search

Bankman-Fried’s Lawyer: FTX’s Spending Was Prudent, Not Reckless

0
0

207 Listen to this article In the ongoing fraud trial of FTX founder Sam Bankman-Fried, his defense lawyer vehemently countered […]

Latest News

Listen to this article

In the ongoing fraud trial of FTX founder Sam Bankman-Fried, his defense lawyer vehemently countered former CEO Nishad Singh’s assertions that the cryptocurrency exchange’s spending on marketing and celebrity endorsements was extravagant, emphasizing that the decisions were strategic, not “reckless or frivolous.”

Testifying for a second day at the Manhattan federal court, the crypto firm’s ex-engineering head, Nishad Singh, was cross-examined regarding his previous statements about the company’s financial practices, Reuters detailed.

Despite being aware of a staggering $13 billion deficit in customer funds in September 2022, Singh maintained his belief that FTX could weather the storm, a point the defense is keen to leverage to demonstrate Bankman-Fried’s conviction that the company’s predicaments were surmountable.

Following FTX’s bankruptcy declaration on November 11, 2022, Mark Cohen, the defense attorney, probed Singh’s perspective on the potential merits of FTX’s brand investments.

Acknowledging both the benefits and costs, Singh’s testimony might bolster the defense’s stance that Bankman-Fried’s financial decisions, however contentious, were made in earnest pursuit of business growth, Reuters indicated.

Bankman-Fried’s trial, now in its third week, revolves around accusations of misappropriating billions in FTX customer funds for various investments, political contributions, and supporting his hedge fund, Alameda Research.

The defense highlighted an instance where Bankman-Fried invested in a celebrity-affiliated tequila brand, suggesting there was more strategic depth to these investments than previously presented. This comes after prosecutors criticized these moves as “reckless and frivolous.”

Highlighting the complexity of these investments, the defense referred to a lawsuit FTX’s current leadership filed against K5, attempting to recover $700 million. It alleged that a Bankman-Fried-directed entity improperly allocated $214 million of FTX’s funds to acquire a stake in Kendall Jenner’s 818 Tequila, despite the brand’s assets being worth a mere $2.94 million at that time. K5 has dismissed the lawsuit as baseless, per Reuters.

Read Also:  Countries which Allow Cryptocurrency as Legal Tender in the Market

While admitting to errors in managing FTX, Bankman-Fried denies any intent of financial misconduct. His defense team hinted that he might testify to clarify his decisions, underscoring his commitment to transparency and truth in this high-stakes legal battle.

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Get Latest Updates

Latest News

Web Stories

Latest News

0
Would love your thoughts, please comment.x
()
x
Scroll to Top
Bitcoin ETFs Surge as Investors Seek Exposure Coinbase, Andreessen Horowitz, and Ripple have joined forces to fund a new crypto DMM Bitcoin Hit by $305M Hack Ripple Releases 1 Billion XRP Tokens What to Expect from Bitcoin’s Price Rally in H2 2024 Trump’s MAGA Coin Soars 7% While Biden Parody Sinks Amid Ex-President’s Trial — NFTs Hold Steady Analyst Warns About Dogecoin Decline CME Denies Solana Futures Plans Amid Growing Rumors Can PEPE flip Polygon? Market cap race heats up! Why Bitcoin Price Is Down Today? Cristiano Ronaldo Launches 4th NFT Collection on Binance Amid $1B Lawsuit Coinbase Alleges SEC Dodging Howey Test in New Appeal Ethereum ETFs Granted Official Approval by SEC Crypto Whale Splurges $10.4 Million on Meme Coin PEPE SOL Price Nearing Support as On-Chain Activity Dips for Solana Penguiana Meme Coin’s Presale Achieves Success, Raising 290 SOL Solana to Bitcoin Bridge, Zeus Network, Set for Debut in Q3 2024 DeFi Lending Leader Aave Unveils V4 Protocol Overhaul MicroStrategy (MSTR) Incurs Losses in Q1 After Digital Asset Impairment Takes Toll Upbit Emerges as Top Five Crypto Exchange, Posing Challenge to Binance, Coinbase