FTX founder Sam Bankman-Fried offered a potential defense strategy on Thursday by informing a federal judge that he had relied on legal guidance when making business decisions, including actions like deleting communications and extending loans to himself.

These actions, as per prosecutors, were seen as contributing to the crimes that resulted in the collapse of his cryptocurrency exchange.

Facing charges of fraud, money laundering, and other offenses, Bankman-Fried had been anticipated to testify before a Manhattan federal jury on Thursday afternoon, the Wall Street Journal reported.

However, in a rather unconventional move, following the jury’s dismissal for the day, U.S. District Judge Lewis Kaplan had the FTX founder provide explanations on several disputed matters.

This was done to enable the judge to determine what Bankman-Fried could communicate to the jurors.

At 31 years of age, Bankman-Fried commenced his testimony with a composed and assured demeanor, elaborating on business decisions influenced by legal counsel.

However, during cross-examination, he struggled to recollect specific conversations with the lawyers who, as he previously stated, had supervised bank accounts, loans, and communication protocols.

At times, he appeared evasive and encountered difficulty in recalling essential details related to the alleged conduct in question.

Written by staff