Sam Bankman-Fried Denies Knowledge of Transferring FTX Deposits to North Dimension: Report

Testifying in court but without the jury present for the trial, Sam “SBF” Bankman-Fried faced questions from prosecutors, the former CEO of FTX moved through Alameda Research to use clients' money for investments.

According to reports from a New York court on October 26, Banman-Fried said he knew why crypto exchange FTX began moving user funds from bank accounts with Alameda to a firm called North Dimension – a “shady entity” used for money laundering. SBF suggested that banks may be more comfortable with North Dimension by avoiding well-known crypto-linked hedge funds like Alameda.

Banman-Fried was not very involved with North Dimension, but said he does not recall discussions with auditors about the FTX user fund going to the entity and Alameda.

“I'll say, I'm not a lawyer, I'm just trying to go back from my memory. […] at the time [at] FTX, thought some customer accounts would be shipped to Alameda.

SBF's testimony in a closed court hearing was one of the final statements made by his defense team, which included attorneys Mark Cohen and Christian Everdale. He testified to believe that the taking of FTX's deposit by Alameda Research was legal while asking the attorneys. At the same time, prosecutors asked about the role of FTX and Alameda in maintaining documents and communications.

“The witness has an interesting way of responding to questions,” Judge Kaplan said so far of SBF's testimony.

RELATED: Sam Bankman-Fried's testimony to challenge government claims, attorney tells judge.

After months of preparation, the criminal trial, which began on October 3, will conclude over the next seven days with Bankman-Fried testifying and closing arguments from both sides. Bankman-Fried could face up to seven charges in the current trial, but is expected to face five more criminal charges in a second trial in March 2024.

Magazine: Sam Bankman-Fried's Life in Prison, Tornado Cash Chaos, and the $3B BTC Whale: Hodler's Digest, August 20-26