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SBF TRIAL PODCAST 10/16: As Week 3 Begins, What Did FTX’s Terms of Service Say About Customer Funds?
Oct 16, 2023
BlockFi CEO Zac Prince testified in the trial against Sam Bankman-Fried. The defense argued that FTX's terms of service may not support the misappropriation claims. The prosecution claimed that misappropriation occurred due to fiduciary duty breach and material misrepresentations. The podcast discusses Alameda's use of customer fiat deposits, the defense's argument on rights and obligations, and the contradictions between FTX's terms of service and the defense's claims.
09:33
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Quick takeaways
- The defense in the SPF trial is relying on FTX's terms of service to argue against misappropriation of customer funds, but contradictions in the terms weaken their argument.
- The prosecution alleges that Sam Bankman-Fried not only committed misappropriation but also made material misrepresentations and omissions, suggesting that the defense's focus on FTX's terms of service may not fully address the allegations.
Deep dives
Phase Two Witnesses Testify with Lesser Involvement in the Alleged Fraud
As the SPF trial enters Phase Two, witnesses who played secondary roles in the alleged fraud are taking the stand. Though their testimony lacks salacious details, it sheds light on the extent of Sam Bankman-Freeze's involvement. BlockFi CEO Zach Prince, one of the witnesses, provided insight into BlockFi's loans to Alameda, claiming he was part of the decision-making process. Other upcoming witnesses include FTX customers, an FBI agent, and an Alameda employee. This shift in witnesses allows for a closer examination of the defense's strategy, particularly their argument that Bankman-Freeze did not technically commit wire fraud due to FTX's terms of service.
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