NEW YORK (Reuters) – Former general counsel of cryptocurrency exchange FTX, Can Sun, testified on Thursday at founder Sam Bankman-Fried’s fraud trial, stating that Bankman-Fried assured him that the bankrupt company had kept customer funds separate and secure from its own assets.
Adding to his testimony, Sun also denied ever approving the lending of FTX customer funds to Alameda Research, Bankman-Fried’s crypto-focused hedge fund.
When questioned by prosecutor Danielle Sassoon, Sun explicitly stated, “Absolutely not,” in response to whether he had ever given his approval for such loans.
This testimony, presented during the third week of Bankman-Fried’s trial at the Manhattan federal court, could undermine the defendant’s claims that he genuinely believed FTX’s handling of customer funds was appropriate, with the involvement of the company’s legal team in his key decisions.
Prosecutors have alleged that Bankman-Fried misappropriated billions of dollars in FTX customer funds to bolster Alameda, engage in speculative venture investments, and donate over $100 million to U.S. political campaigns. Bankman-Fried, once a billionaire, pleaded not guilty to two counts of fraud and five counts of conspiracy, with potential imprisonment of several decades if convicted.
While Bankman-Fried admits to making mistakes in managing FTX, he insists that he had no intention of defrauding customers. The defense is scheduled to commence presenting its case on October 26, and Bankman-Fried’s lawyers have indicated that he may consider testifying in his own defense.
Reporting from New York, Luc Cohen
Editing by Will Dunham
