Another Bad Week for Sam Bankman-Fried in His Criminal Trial - Ep. 558
Oct 20, 2023
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FTX CEO Sam Bankman-Fried is facing challenges in his criminal trial for alleged misuse of customer funds and lying to lawyers. Compelling evidence from his inner circle, including former head engineer Nishad Singh's emotional testimony of feeling betrayed, has made it difficult for Bankman-Fried to convince the jury of his innocence. The defense strategy, order of witnesses, and damning financial analysis were discussed, with speculation about Bankman-Fried testifying. The podcast also covered industry developments like Uniswap fees, DApp monetization, and changes in FTX's bankruptcy case.
Compelling evidence from Sam Bankman-Fried's inner circle has made it challenging for him to convince the jury of his innocence, with testimonies revealing the extent of FTX's misuse of customer funds and alleged lies to lawyers.
The defense heavily targeted Nishad Singh, the former FTX head engineer, in comparison to other witnesses, highlighting Singh's feelings of betrayal and suicidal thoughts, potentially affecting the jury's empathy towards him.
Deep dives
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Misinformation about BlackRock's Bitcoin ETF approval causes market instability
A tweet falsely claiming that BlackRock's Bitcoin ETF had received SEC approval caused Bitcoin's price to briefly spike before dropping back to previous levels. The tweet, which was later corrected and then deleted, caused market volatility and raised concerns about potential market manipulation. Over $136 million worth of short positions were liquidated as the price rose, followed by losses when the price dropped.
Uniswap faces backlash for introducing fees on its interface
Uniswap Labs, the developer of the Uniswap protocol, introduced a 0.15% swap fee on its web and mobile interfaces. The move sparked criticism from the crypto community, as the original promise of the Uniswap protocol was to be a fee-less decentralized exchange. The decision raised concerns about Uniswap Labs' influence over the protocol and the handling of governance and token holder rights.
Sam Enzer, a partner at the law firm Cahill Gordon & Reindel, told Laura that compelling evidence from Sam Bankman-Fried’s inner circle had increased the difficulty for the fallen FTX CEO to convince a jury of his innocence. Former FTX head engineer Nishad Singh said that he became suicidal after understanding the full magnitude of FTX’s misuse of customer funds, while ex-chief legal counsel Can Sun helped show how SBF allegedly lied to lawyers.