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As Sam Bankman - Fried ’s tribulation approaches its final innings , the head of how he ’ll ride his defense hangs over the legal proceeding .
On Thursday , public prosecutor will terminate their case against Bankman - Fried — which includes seven charges related to fraud and money laundering — and the defendant ’s team will be given the opportunity to make a lawsuit .
During a teleconference on Wednesday , Mark Cohen , Bankman - Fried ’s lede lawyer , say that the defense has three potential informant . He also said , “ Our node will be bear witness . ”
Cohen said he expect Bankman - Fried ’s testimonial to be the same duration as that of his former fellow worker , who pleaded shamed : FTX co - founder and CTO Gary Wang , Alameda CEO Caroline Ellison , andFTX head of technology Nishad Singh . He also say that it will take a “ effective part of Thursday , maybe all of Thursday , ” with electric potential for Friday cross - examination .
Assistant U.S. attorneys Nicolas Roos said if the defendant testifies , which Cohen indicate he is , and depending on what Bankman - Fried says , a Monday closing for the trial “ may no longer be realistic . ”
“ We ’re in the last innings , and , to alternate metaphors , this is his Hail Mary , ” enounce Josh Naftalis , a former Union prosecutor who ’s now a partner at Pallas Partners . He predicted to begin with this calendar week on TechCrunch’sChain Reaction podcastthat Bankman - Fried would testify .
While he was working in the Southern District of New York , Naftalis secure convictions in every federal criminal tryout that he led as an adjunct U.S. attorney . Based on that experience , Naftalis say that Bankman - Fried is up against strong grounds , three cooperating informant and details of how billions of dollar flowed through corporations he controlled . “ This is his chance to say , ‘ I did n’t intend to do anything unseasonable . I did n’t act in bad faith . I was acting in good faith , things just got out of control , ’ and it ’s really hard for any suspect to explain to a panel what ’s in his head unless they take a viewpoint , ” Naftalis allege .
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Of of course , Bankman - Fried testifying come with peril of more grounds mounting against him . But as we ’ve get wind during the trial from some of his near interior circle executives , he allegedly loves to take risks .
Taking the base come with its own perils . “ Once it decease to cross[-examination ] , he does n’t get to say , ‘ I ’m done , ’ ” Naftalis said . “ He ca n’t just walk out if he does n’t like how it ’s going . ”
SBF was like Madoff, but different
Many people have compare the alleged fraud to Bernie Madoff ’s Ponzi scheme . The convicted fraudster received a mammoth block of time in prison house , but Naftalis does n’t see Bankman - Fried ’s case as one that would get the maximal time . Bankman - Fried is confront up to 115 year for the seven care . He has a separate test scheduled in March 2024 for political putridness and additional money - launder charge .
“ I think when someone ’s untested , it ’s a lot harder to say , does this somebody deserve to drop 60 age in gaol ? ” Naftalis say . “ That is an unbelievably long time for a whitened - shoe collar cause , which is why I do n’t think that this sentence will be anywhere close to that . Now , I reckon it ’s hard for me to presage , but Madoff aim basically 100 and something geezerhood in jail . I call up that was to send a substance that this guy is honest-to-god , he ’s in all probability go to , regrettably , go in prison , which he did . ”
Ex - SDNY prosecutor says Caroline Ellison , Gary Wang and Nishad Singh probably wo n’t get jail sentence
Making sense of strategies
The crypto community , as well as some othernewsoutlets , have voiced opinions — mostly disconfirming — about how Bankman - Fried ’s lawyer are defending him . Much of the commentary speculates that the Union judge may be side with prosecutor . But Naftalis , who spent over a decennary in that building and led cases in front of Judge Lewis A. Kaplan , disagrees .
“ I suppose two thing that people are getting wrong are related , which is the criticism of the justice and the unfavorable judgment of the defense , ” Naftalis tell . He noted that he ’s worked with Kaplan on case in the yesteryear and believe that he ’s not favoring prosecution as some people have debate , but is alternatively “ calling it straight . ”
The fact that prosecutors ’ evidence may be perceived as hurting the defense ’s case does n’t mean Kaplan “ has his thumb on the scurf ; it mean he ’s doing his problem , ” Naftalis articulate .
The political science ’s primary witnesses , who took plea deal , are doing a lot to make Bankman - Fried ’s case bulletproof .
“ It has been fundamental for [ public prosecutor to have ] three attestant who have told coherent account that underpin each other and that describe up with the documents , ” Naftalis say , referring to Wang , Ellison and Singh , all part of Bankman - Fried ’s internal circle .
While each of the three major witnesses had their role in help the pursuance prove its case , Naftalis said that Ellison had the most impingement . The government called her 2nd , after Wang who set the stage , but “ she was the main case . ”
Former Alameda CEO Caroline Ellison explain how FTX hide deprivation , stun lenders
And Naftalis say that so far , the prosecution is doing a just job . “ I do n’t think they ’re go for an acquittal . I think they ’re go for a hung jury , ” Naftalis said . “ I consider the crypto Twitter earth does n’t interpret how firm the government ’s case is , how good a line the judge is doing and how good a task the defence lawyer is doing . ”
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