© Reuters. FILE PHOTO: Indicted FTX founder Sam Bankman-Fried leaves the United States Courthouse in New York City, U.S., July 26, 2023. REUTERS/Amr Alfiky/File Photo
By Luc Cohen
NEW YORK (Reuters) – A U.S. judge on Thursday restricted Sam Bankman-Fried’s means to name expert witnesses to testify at his felony fraud trial, in a blow to the FTX cryptocurrency change founder.
Bankman-Fried wished to name seven specialists on matters equivalent to cryptocurrency markets and English contracts, to persuade jurors to acquit him of stealing billions of {dollars} in FTX buyer funds to plug losses at his Alameda Research hedge fund.
But in a written order, U.S. District Judge Lewis Kaplan mentioned three proposed witnesses can’t take the stand, as a result of their testimony was irrelevant or might confuse the jury.
He additionally mentioned Bankman-Fried might search to name the remaining 4 specialists, however solely to rebut prosecution witnesses.
Among the witnesses Kaplan rejected was Peter Vinella, a guide who supposed to testify about “FTX’s use of widely-accepted practices in the financial services industry.” Kaplan discovered the testimony irrelevant.
Bankman-Fried additionally can’t name English barrister Lawrence Akka to testify about FTX’s phrases of service, which had been ruled by English regulation, as a result of solely a judge might inform jurors what the regulation is, Kaplan mentioned.
Court papers recommend Bankman-Fried might argue that the phrases of service didn’t forestall the usage of buyer funds to make investments – a lot as banks use deposits to fund loans – and the observe had been widespread within the cryptocurrency trade.
Bankman-Fried, a 31-year-old former billionaire, has pleaded not responsible. He has acknowledged insufficient danger administration at FTX previous to its November 2022 collapse, however denied stealing funds.
It is widespread in U.S. felony trials for prosecutors and defendants to name specialists to assist jurors perceive advanced points.
Prosecutors have mentioned they plan to name three former FTX and Alameda executives, who’ve all pleaded responsible, to testify at Bankman-Fried’s trial, which can last as long as six weeks.
