Sam Bankman-Fried, a former cryptocurrency executive, is facing multiple fraud charges following the bankruptcy of his company FTX. He is seeking to limit the government's use of several witnesses, including company investors and a Ukrainian customer affected by the exchange's collapse. This request comes just hours before his trial is set to begin.
Defense Calls for the Opportunity to Cross-Examine Government Witnesses
Bankman-Fried has pleaded not guilty to the charges. He aims to prevent former company insiders from testifying about the meaning of alleged "coded" expressions used in an alleged conspiracy to misuse customer funds.
On the other hand, prosecutors from the US Department of Justice (DOJ) intend to have former customers and investors testify about how they understood FTX would safeguard their assets.
However, Bankman-Fried's lawyer, Mark Cohen, argued in a public filing that this request is "premature". It could lead jurors to premature conclusions. Cohen contended that the defense should have the opportunity to cross-examine government witnesses.
Cohen further objected to a proposed Ukrainian FTX customer testifying remotely. He alleged that this choice was made to elicit sympathy and outrage from the jury due to the ongoing war in Ukraine.
Cohen accused the government of "gamesmanship" for wanting to call expert investors after Judge Lewis Kaplan had blocked Bankman-Fried's proposed witnesses. He argued that the meaning of Bankman-Fried's words does not require explanation by former FTX insiders cooperating with the prosecution.
DOJ Keeps Co-Conspirator Identities Confidential in Bankman-Fried Trial
TheDOJ did not directly name the alleged co-conspirators it wishes to call on those witnesses to provide explanations. Thus, it is likely to refer to individuals such as Caroline Ellison, Bankman-Fried's former romantic partner and the former head of FTX's hedge fund arm, Alameda Research.
The trial, beginning with the jury selection phase, commenced on Tuesday at 9:30 am Eastern time in a lower Manhattan courthouse.
The arguable issue of witness selection is expected to be a focal point. It raises questions about the impact of testimony on the jury's perception of the case. This legal battle underscores the complexity and importance of addressing cryptocurrency-related matters within the US legal system.
This article was written by Tareq Sikder at www.financemagnates.com.
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