Former federal prosecutor Michael Weinstein and Bloomberg legal reporter Ava Benny-Morrison discuss the cross-examination of Sam Bankman-Fried. Fara Sunderji, a partner at Dorsey & Whitney, discusses upcoming Supreme Court oral arguments over the trademark 'Trump Too Small'.
The prosecutor challenged Sam Bankman-Fried's credibility by presenting contradictory statements and highlighting his active involvement in directing funds and making self-benefitting decisions.
Through cross-examination, the prosecutor aimed to undermine Sam Bankman-Fried's credibility by pointing out inconsistencies between his testimony and his previous public statements, while also highlighting his closer relationship with Alameda than he portrayed.
Deep dives
Sam Bagman-Fried's Testimony
During direct examination, Sam Bagman-Fried painted himself as a disengaged CEO who didn't oversee Alameda research, didn't code, and only skimmed the firm's terms of service. However, on cross-examination, the prosecutor confronted him with numerous public and private statements that contradicted his narrative. The prosecutor challenged his credibility and tried to show that he was actively involved in directing the transfer of funds and making decisions that benefitted him personally. While Bagman-Fried appeared relaxed during direct examination, he became more combative and vague under cross-examination.
Challenges to Bagman-Fried's Testimony
The prosecutor challenged Bagman-Fried's testimony by pointing out inconsistencies between his statements in court and his previous public statements on social media, interviews, and articles. By contrasting his current narrative with his past accounts, the prosecutor aimed to undermine his credibility and create doubt about the truthfulness of his testimony. The prosecutor also highlighted his involvement in costly venture investments and attempted to show that he had a closer relationship with Alameda than he portrayed.
Cracking Holes in Bagman-Fried's Testimony
The prosecutor scored some concessions during cross-examination. Bagman-Fried admitted to making decisions on costly venture investments at Alameda and acknowledged discrepancies between his testimony and his previous statements regarding the company's liability to FTX. The prosecutor also explored his relationship with Caroline Allison and other key witnesses, suggesting that he blamed them to some extent for what happened. The prosecutor focused on backdating documents, highlighting instances where Bagman-Fried's actions contradicted his claims of not regularly backdating.
Outlook and Conclusion
Bagman-Fried's testimony was significant, but the prosecutor's cross-examination and the presentation of contradictory statements challenged his credibility. The trial is approaching its end, with close examination expected to finish soon. Rebuttal witnesses, including an FBI agent and an investor in FTX, may be called. While Bagman-Fried's defense sought to create doubt and paint him as a disengaged CEO, the overwhelming evidence against him, combined with the contradictions in his testimony, may make it difficult for the defense to overcome the charges. The jury's impression of his testimony, particularly in relation to his earlier statements, will be crucial.
Former federal prosecutor Michael Weinstein of Cole Schotz and Bloomberg legal reporter Ava Benny-Morrison discuss Sam Bankman-Fried’s cross-examination. Fara Sunderji, a partner at Dorsey & Whitney, discusses oral arguments coming up Wednesday before the Supreme Court over trademarking “Trump Too Small.” June Grasso hosts.