Sam Bankman-Fried’s crypto fraud trial is launching into its fourth day on Friday with more testimony from his now-defunct company’s co-founder, Gary Wang.
Just before 4pmET Thursday, Wang took the stand in Bankman-Fried’s Manhattan federal court trial, as the fourth prosecution witness. He returns to testify this morning.
“Did you commit financial crimes while working at FTX?” prosecutor Nicolas Roos questioned.
“Yes,” Wang replied, explaining that these crimes included wire fraud.
“Who are the main people you committed these crimes with?”
“Sam Bankman-Fried, Nishad Singh and Caroline Ellison,” Wang answered.
“Mr Wang, do you see any of the people you committed those crimes with in the courtroom today?”
Wang stretched and scanned the room, as if he were having some sort of difficulty. A moment passed and he then said “Yes.”
“Who do you see?”
“Sam Bankman-Fried.”
Wang pleaded guilty to his role in FTX’s collapse. He is testifying under a plea agreement, court proceedings have revealed.
Bankman-Fried is facing seven counts, on conspiracy and fraud charges, over the dramatic collapse of his crypto exchange and its associated hedge fund, Alameda Research.
Earlier on Thursday, jurors heard from Bankman-Fried’s former friend-turned-FTX colleague, Adam Yedidia. It was Yedidia’s second day on the stand.
His testimony put Bankman-Fried at the center of FTX’s operations – which bolstered the prosecution’s argument that he was responsible for its function and culpable for wrongdoing.
“He was the CEO – so, sort of in charge of everything,” Yedidia said Thursday, responding to prosecutor Danielle Sassoon’s question on Bankman-Fried’s role at FTX.
Yedidia also discussed Bankman-Fried’s relationship with Caroline Ellison, his on again, off-again girlfriend and Alameda Research head. Ellison, who pleaded guilty to her role in the companies’ implosion, is poised to be prosecutors’ star witness.
“Sometime in early 2019, the defendant told me that he and Caroline had had sex, and asked if it was a good idea to date,” Yedidia recalled, responding to Sassoon’s inquiry about what Bankman-Fried had said about Ellison.
“I said ‘no.’”
“How did he respond to that?” Sassoon said.
“He said he figured it was what [he] thought I would say.”
Matt Huang, co-founder of the crypto investment fund Paradigm, was the third prosecution witness. Paradigm was among the highest profile investors in FTX.
Bankman-Fried has pleaded not guilty. His team has repeatedly said that Bankman-Fried was trying to do the right thing but couldn’t quite keep his head above water.
During the defense opening, lawyer Mark Cohen said: “Sam didn’t defraud anyone. Sam didn’t intend to defraud anyone. Sam acted in good faith.
“There was no theft.”
