Sam Enzer, a partner at the law firm Cahill Gordon & Reindel, told Laura that former FTX CEO Sam Bankman-Fried did about as well as he could in his testimony Friday but that he was unlikely “to withstand the scrutiny” of what prosecutors have already said will be a robust cross-examination when he takes the stand Monday.
Enzer noted that Bankman-Fried’s attempts to explain why he thought his trading shop, Alameda Research, could borrow billions in dollars of FTX customer assets “defies common sense,” and that the company’s own terms of agreement or any other communications offered no justification for this belief. A Thursday hearing without the jury present, in which the defense gave a preview of some arguments it wanted to make, ended up giving the government answers from SBF that it can now use against him. Enzer also said that Bankman-Fried’s contention that his biggest mistake – a failure to implement proper risk management – did not constitute criminal fraud, did not address the core of the government’s case; namely, that he lied about how FTX was handling customer deposits.
Show highlights:
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The Ugly Tradeoffs of Ledger’s New Recovery Service - Ep. 494
Bitcoin’s BRC-20 Mania: Is It Sustainable? - Ep. 493
The Chopping Block: Do Aragon Association Members Get 'Fat Salaries' With 'Zero Accountability'? - Ep. 492
The IRS Wants $44B From Bankrupt FTX. How Is That Possible? - Ep. 491
Writing the Book on FTX’s Downfall: ‘It Was All Just Sam’ - Ep. 490
$630M Due Next Week: Is DCG at Default Risk? - Ep. 489
Do You Need to Think Twice Before Restaking Your Assets? - Ep. 488
The Chopping Block: Why Are We Still Building Layer 1s? - Ep. 487
Coinbase's Legal Action Against the SEC: How It Will Likely Unfold - Ep. 486
Gary Gensler vs. Crypto: What Will the SEC Attack Next? - Ep. 485
The Chopping Block: Are Layer 2s Stealing Ethereum’s Thunder? - Ep. 484
‘Is ETH a Security?’ Why Gary Gensler Couldn’t Give Congress a Straight Answer - Ep. 483
Why MEV Will Always Be Controversial - Ep. 482
The Chopping Block: Are VCs Bad for Crypto? - Ep. 481
Laura’s 10-Year Anniversary of Self-Employment: A Personal Message
Shapella in the Rearview: After Major Upgrade, What’s Next for Ethereum? - Ep. 480
Are DAOs Strong Enough to Survive the Regulators? - Ep. 479
Rep. Emmer on Why He Believes Gary Gensler Is a ‘Bad-Faith Regulator’ - Ep. 478
The Chopping Block: Is Ether the Only ‘Organic Yield’ in Crypto? - Ep. 477
Is the Government Trying to Kill Off Crypto in the US? - Ep. 476
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