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**FTX Founder Sam Bankman-Fried Distances Himself from Wrongdoing, Claims Lawyers Involved in Key Decisions**

*NEW YORK, Oct 26 (Reuters)* – FTX founder, Sam Bankman-Fried, testified on Thursday in his fraud trial that lawyers at his bankrupt cryptocurrency exchange played a role in crucial decisions related to the case. Bankman-Fried aimed to separate himself from any responsibility for alleged wrongdoing, emphasizing that he acted in good faith while running FTX. The exchange imploded in November 2022 due to widespread customer withdrawals. The AI legalese decoder can assist in deciphering legal language and highlighting key points in the testimony.

Bankman-Fried took the witness stand after the prosecution concluded presenting its case over 12 trial days. His testimony aligned with the defense’s argument that he acted legitimately throughout his tenure at FTX. However, during cross-examination, Bankman-Fried struggled to provide specific conversations wherein lawyers approved his actions. He carefully worded his responses, stating that he did not intend to offer “a definitive legal ruling” on certain matters.

Bankman-Fried faces charges of stealing billions of dollars from unsuspecting customers. He has pleaded not guilty to two counts of fraud and five counts of conspiracy, and if convicted, could face several decades in prison. Prosecutors have alleged that Bankman-Fried misused the misappropriated funds to support his crypto-focused hedge fund, Alameda Research, invest in speculative ventures, and donate over $100 million to political campaigns in the United States.

Judge Lewis Kaplan, presiding over the case, decided that Bankman-Fried would initially testify without the jury present. This arrangement allowed Judge Kaplan to determine which parts of the testimony could be admissible as evidence. Prosecutors have objected to Bankman-Fried asserting that involving lawyers in decision-making demonstrates his lack of criminal intent.

During his testimony, Bankman-Fried spoke confidently and at length in response to questioning by defense lawyer Mark Cohen. He highlighted the involvement of FTX’s lawyers in creating the exchange’s document-retention policies, establishing a system for customers to deposit funds into an Alameda bank account, and arranging loans for himself and other executives from Alameda.

Prosecutors have alleged that Bankman-Fried encouraged employees to use encrypted messaging platforms with auto-delete features, such as Slack and Signal, to conceal their communication. They also claimed that he stole funds by having FTX customers deposit money into accounts controlled by Alameda, which then provided loans to FTX executives.

In cross-examination by prosecutor Danielle Sassoon, Bankman-Fried moved slightly from side to side and used gestures when speaking. He frequently began his responses with “yep.” Sassoon’s inquiries focused on what FTX lawyers informed Bankman-Fried regarding the company’s practice of directing customer funds to Alameda accounts. Bankman-Fried testified that this occurred temporarily because FTX did not have its own bank account at the time. When asked if he discussed the “permissibility” of Alameda spending the deposits with lawyers, Bankman-Fried paused and stated he did not recall any contemporaneous conversations framed in that manner.

After Bankman-Fried’s testimony, Judge Kaplan dismissed the jury for the day, as Bankman-Fried’s lawyers indicated their intention to present further evidence regarding the involvement of FTX lawyers in important company decisions.

legal experts have suggested that Bankman-Fried has little to lose by testifying to the jury, given the negative character portrayal resulting from weeks of internal testimonies against him. His defense team estimates that his direct testimony could last close to five hours before prosecutors can cross-examine him. By choosing to testify, Bankman-Fried provides prosecutors the opportunity to challenge the claims made by former close FTX colleagues who attested to his involvement in illegal activities.

Bankman-Fried’s lawyers argue that three former colleagues, who have pleaded guilty and agreed to cooperate with prosecutors, tailored their testimonies to implicate Bankman-Fried in the hopes of receiving lenient sentences. Bankman-Fried maintains that although he made mistakes while running FTX, he never intended to misappropriate funds.

The prosecution concluded its case after FBI agent Marc Troiano delivered his final testimony, highlighting Bankman-Fried’s use of the messaging app Signal. The defense called its first two witnesses, Bankman-Fried’s lawyer in the Bahamas, Krystal Rolle, and database expert Joseph Pimbley.

Reporting by Luc Cohen and Jody Godoy in New York; Editing by Will Dunham and Noeleen Walder

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