DOJ Plans to Call Former FTX Consumers, Investors, and Employees as Witnesses in Upcoming Samuel Bankman-Fried Trial

The judicial spotlight is soon to be on Samuel Bankman-Fried, the former CEO of FTX, as the U.S. Department of Justice (DOJ) outlines its strategy for the upcoming trial. On September 30, 2023, the DOJ disclosed through a letter motion in limine, the array of witnesses it intends to call upon. These individuals, hailing from different interactions with the cryptocurrency exchange FTX, are expected to provide crucial testimonies concerning the company’s handling of customer funds under Bankman-Fried’s watch.

A significant part of the trial will hinge on the testimonies from a variety of individuals who had differing relationships with FTX. Initially, the government intends to call upon some customers of FTX, who deposited funds on the platform. Their testimony will aim at shedding light on their expectations and understandings regarding how the company would manage and safeguard their deposits.

Following that, investors who purchased shares in FTX are expected to testify about the representations made by Bankman-Fried concerning FTX’s role as a “custodian” of customer funds. Their insights will delve into how these representations influenced their understanding and decisions in investing in FTX.

Moreover, certain cooperating witnesses, who have already pled guilty to conspiring to commit fraud with the defendant, are anticipated to testify about their interactions and understandings of certain actions and statements made by Bankman-Fried during the period under scrutiny.

Among the witnesses, a notable mention is an individual from Ukraine, referred to as "FTX Customer-1." Given the ongoing unrest in Ukraine, traveling to the U.S. to testify presents a significant challenge. The DOJ, recognizing this hurdle, has suggested the use of video conferencing as a viable alternative to ensure the witness’s testimony is recorded and considered.

On the other side of the aisle, the defense team of Bankman-Fried argues that these interrogations could implicitly show guilt on Bankman-Fried's part, which could be prejudicial and undermine the "innocent until proven guilty" principle.

With the process of jury selection scheduled to begin on October 3, the upcoming trial has garnered significant attention. The spotlight on this high-stakes legal showdown is expected to intensify as the trial date nears. The case is not only pivotal for the involved parties but is also likely to have broader implications on the regulatory landscape surrounding cryptocurrency exchanges, particularly concerning the safeguarding of customer assets.