Sam Bankman-Fried trial live updates: Day 3

FTX co-founder Sam Bankman-Fried faces seven counts of federal offenses in a fraud trial taking place at a Manhattan courthouse. The former crypto executive is accused of misappropriating billions of dollars of customer funds for real estate, donations, political contributions and investments. 

So far in the trial, the jury was finalized, both the prosecution and the defense made their opening statements, and the court heard testimony from the first witnesses.

11:20 am ET: Is the new Sam Bankman-Fried book by Michael Lewis book worth your time?

To kick off what will (presumably) be a busy day of coverage, our opinion editor Molly Jane Zuckerman read the new Michael Lewis book, “Going Infinite,” so you don’t have to. 

In her weekly Off Topic column, Zuckerman dove back into the world of SBF (she’s our resident expert on the subject, having read multiple books on the ex-FTX CEO just this year).

Zuckerman said the downfall of Sam Bankman-Fried was also the downfall of the book, since it was meant to be a success story until, well, I think we all know how the story ends.

She was also less than impressed with the way Lewis discussed SBF being allowed to “be Sam.” The description means that he couldn’t commit to meetings, calls or events until the last minute — the night before — and leaving food littered on the floor for other people to clean up when he missed his mouth.

Zuckerman criticized the way Lewis wrote about him, falling back on the portrayal of Bankman-Fried as a quirky nerd. Even SBF’s own defense used it in their opening statement earlier Wednesday, labeling him as a “math nerd who didn’t drink or party.”

“The truth was that grown-ups bored him. All they did was slow him down,” Lewis wrote.

Separately, Lewis also wrote about a memo Bankman-Fried sent to the former Alameda CEO and love interest, Caroline Ellison, where he began the memo by saying, “In a lot of ways I don’t really have a soul.”

“The fact that Lewis is more critical in the last 20 pages of how the FTX bankruptcy is handled than he is of how FTX is run in the first 200 says all that you need to know about this book,” Zuckerman wrote.

10:40 am ET: Two witnesses take the stand 

We’ve made it to day three of the Sam Bankman-Fried trial. 

First up this morning, former SBF friend (and college roommate) Adam Yedidia will take the stand to wrap up his testimony. He’ll face questioning from lawyers as well. 

After Yedidia’s testimony, Paradigm co-founder and former Sequoia partner Matt Huang is expected to take the stand.

Read more: Day 2 of Sam Bankman-Fried’s trial: 5 things you should know

A lot happened yesterday so let’s start with an In Case You Missed It (ICYMI): Yedidia was the final witness called to the stand on Wednesday. To avoid prosecution, he’s been granted immunity so long as he tells the truth. Not only was he a college roommate of SBF, but he was one of the handful to move with the former FTX CEO at the $30 million apartment in the Bahamas. 

However, Yedidia quit in November 2022 after an FTX employee (Yedidia was also an employee of FTX and Alameda) told him that customer funds from FTX were being used to pay Alameda creditors. He had not spoken to or seen Bankman-Fried since November, he said yesterday.

Read more: Former friend of Sam Bankman-Fried takes the stand: Day 2

The other witness was someone that SBF may have never heard of, though the Frenchman was quite familiar with SBF. Marc-Antoine Julliard, a French citizen living in London, said he lost thousands of dollars to FTX after he tried to withdraw on Nov. 8, 2022 — just days before FTX officially collapsed.

This is a developing story.

Blockworks reporters Casey Wagner and James Cirrone are covering Sam Bankman-Fried’s trial from the courtroom in New York. Follow for instant trial updates on their X accounts.

Don’t miss the next big story – join our free daily newsletter.

Follow Sam Bankman-Fried’s trial with the latest news from the courtroom.

Leave a Reply

Your email address will not be published. Required fields are marked *