After 17 days, the fate of Sam Bankman-Fried, the founder and former CEO of FTX, hangs in the balance as his trial continues. The case has attracted a lot of attention from legal experts and observers, who have shared their varying opinions on the possible outcome.

One such legal commenter is David Lesperance, managing director at Lesperance & Associates and a lawyer with over three decades of experience in finance. Lesperance told crypto.news in an interview that the prosecution has presented a strong case against Bankman-Fried.

The charges against Bankman-Fried include fraud, misappropriation of customer funds, and other violations related to his role in FTX and Alameda Research.
Moreover, Bankman-Fried’s defense has adopted a novel approach, which Lesperance regards as a last-ditch effort. Arguments aiming to put the blame on Caroline Ellison, Bankman-Fried’s ex-girlfriend, and Bitcoin’s volatility have not sounded as convincing.

In his testimony, Bankman-Fried feigned ignorance. The disgraced FTX founder also tried to place the blame on Ellison, alleging that Alameda Research did not employ sufficient hedging measures under Ellison’s leadership.
In his comments to crypto.news, Lesperance argues that Bankman-Fried’s choice to testify reflects his risk-taking personality and confidence in his persuasive skills. However, the legal expert notes that this strategy seems to have backfired.

A barrage of allegations
The trial has uncovered many truths, with allegations involving the mishandling of FTX customer funds and deceiving investors.

Several witnesses have claimed that Bankman-Fried engaged in unethical practices such as paying off Chinese authorities and creating a misleading public persona. The gravity of these accusations has resulted in thorough examination, necessitating a careful approach to the defense’s strategy.

Others provided detailed accounts of their experiences, highlighting the inner workings of FTX and Alameda Research. Key individuals like Ellison and Gary Wang, who were part of Bankman-Fried’s inner circle, also gave their respective testimonies. Ellison claimed Bankman-Fried had ambitions to become POTUS (President of the United States) someday.
Another surprising disclosure suggests that Bankman-Fried invested significant sums in celebrity endorsements, sending millions to people like Steph Curry, Kevin O’Leary, Tom Brady, and Larry David. Furthermore, substantial amounts were supposedly used for buying real estate and luxury apartments.
The trial has also sparked concerns about how customer assets entrusted to Alameda and FTX were managed. Witnesses have pointed out that decisions were taken without proper scrutiny and that the handling of customer assets was not done appropriately.