On November 2, the government issued a rebuttal in response to former FTX CEO Sam Bankman-Fried's defense statement, following his closing arguments the previous day. This development unfolds as the trial's conclusion draws near, with the 12-member jury scheduled to receive their final instructions in Manhattan's Southern District Court.
Assistant U.S. Attorney Danielle Sassoon asserted that the prosecution had effectively met the burden of proving Bankman-Fried guilty on seven counts of fraud and conspiracy to commit fraud. During her address to the court, Sassoon emphasized that the former FTX CEO had provided clients, investors, and the media with misleading information, creating a false impression of FTX's asset security and denying any association between Alameda Research and the funds in question.
Sassoon highlighted tweets and public statements made by Bankman-Fried in the lead-up to FTX's collapse, including claims that client funds were held in separate accounts when, in reality, they were being utilized by Alameda Research. The prosecution further rejected the defense's argument that Bankman-Fried's media appearances post-collapse were aimed at bolstering his reliability during the exchange's inability to reimburse customers, emphasizing that it was a deliberate deception to gain customers' trust.
Prosecutors also challenged the defense's assertion that Bankman-Fried was unaware of Alameda's substantial credit line and the utilization of client funds for repaying lenders, emphasizing that the former CEO regarded these client funds as his "piggy bank." In response to the defense's depiction of the government's closing arguments, claiming they painted Bankman-Fried as a monster, Sassoon deemed it "desperate" and pointed out that Bankman-Fried's inner circle, including Caroline Ellison, Gary Wang, and Nishad Singh, had acted based on his instructions.
Bankman-Fried's former associates have cooperated with the government and provided testimonies during the trial. In their closing arguments, defense attorneys aimed to discredit these testimonies, alleging they were given under strict cooperation agreements with federal prosecutors. In her statements, Sassoon contended that the defense was essentially trying to convince jurors that Bankman-Fried was oblivious to the situations at Alameda and FTX, a claim she labeled "ridiculous" and at odds with the presented evidence. She concluded by asserting that FTX's strategy was to avoid hiring a risk officer to prevent the discovery of deleted messages and misappropriation, highlighting Bankman-Fried's awareness of the wrongdoing due to his reluctance to appoint a risk officer.
