Sam Testified in Court!!... Without the Jury - SBF Trial Day 13
Oct 27, 2023
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Sam Bankman-Fried testified in court without the jury present. Topics discussed include the judge's frustration, testimony categories and document retention, lawyer-drafted loan agreements, contentious terms of service, unknown platform features, and arguments in court.
The judge will rule on the admissibility of Sam's testimony tomorrow, which covers the disputed categories discussed during the court preview.
The defense argued that the use of Signal and deletion of messages were not shady, while the prosecution questioned Sam's credibility and relevance of the topic.
Deep dives
Sam Beckman Freed's Testimony
Sam Beckman Freed took the stand in court, but not in front of the jury. The defense and prosecution have been debating over what should be admissible in court regarding Sam's testimony. The judge decided to hear the disputed testimony themselves and rule on its admissibility. This preview of the testimony covered five categories: signal testimony, the North Dimension bank account, loans made to FTX executives, the terms of service, and what happened with Sam in the Bahamas. During the preview, the defense emphasized that lawyers were involved in decision-making, while the prosecution challenged Sam's understanding and knowledge of certain aspects. The judge will rule on the admissibility of the testimony tomorrow.
The Signal Chat and Document Retention Policy
The defense argued that the use of Signal, an encrypted messaging app, and the deletion of messages with Noshad and Caroline were not shady. Sam explained that Signal messages were deleted to protect the business and prevent potential misinterpretation of messages. He mentioned a document retention policy drafted by the chief regulatory officer, which outlined what corporate documents should be retained or deleted. The defense felt that Sam's testimony on this was strong, while the prosecution focused on the relevance of the topic and questioned Sam's credibility.
The North Dimension Bank Account
Sam claimed he had minimal involvement in setting up the North Dimension bank account, which was used to accept customer deposits for FTX. The prosecution questioned the ambiguity surrounding the account not being directly associated with Alameda. Sam insisted that he signed the paperwork as instructed by his lawyer, Dan Freeberg, the chief regulatory officer. The exact reasons behind the bank account setup and the lack of clarity on wire instructions remained unclear. The defense argued that Sam's involvement was limited, while the prosecution aimed to establish his knowledge and decision-making.
Loans to FTX Executives and Terms of Service
The defense highlighted that loans made to FTX executives were structured with the assistance of counsel. They argued that the loan agreements were legal and defended allegations of impropriety. The prosecution conceded that the loan structure itself may not be illegal, but investigated whether the funds originated from customer accounts that were not supposed to be touched. The terms of service were brought up, underscoring clauses related to margin trading and the possibility of socialized losses. The prosecution questioned Sam's understanding of the terms and his discussions with legal counsel. The judge challenged the defense's reliance on counsel's advice in light of potential wrongdoing.
Sam Bankman-Fried took the stand!! It's all happening folks! But of course nothing goes as planned + so our first look of Sam testifying happened... without a jury present.
We're breaking it all down today, including why Judge Kaplan got ~very~ frustrated with Sam and where each side scored points.