Amid the ongoing fraud trial, Sam Bankman-Fried’s lawyer has said that the FTX co-founder’s spending was not “reckless.” Indeed, the former CEO’s defense team has sought to answer claims made by former FTX executive Nishad Singh during his testimony discussing the actions taken by Bankman-Fried. Singh discussed Bankman-Fried’s excessive spending on real estate, investments, and celebrity endorsement deals. However, the defense has sought to combat the perception that the spending was not made with the benefits of business in mind. Subsequently, lawyer Mark Cohen focused his cross-examination on highlighting Bankman-Fried’s intention.
FTX Source – Fox Business
Now, Bankman-Fried’s lawyer is defending that claim, insisting that the spending referenced in yesterday’s testimony was not “reckless.” Specifically, Cohen engaged in a cross-examination that attempted to highlight how such spending was a net positive for the business as a whole. According to Reuters coverage, Cohen asked Singh if the funds used in purchasing celebrity endorsements were useful for brand promotion. “I understood it had business benefits and costs,” Sign stated. Yet Cohen said that the spending was not “reckless and frivolous,” as he pushed back against claims.
Sam Bankman-Fried to Face Campaign Finance Charge, DOJ Stands Firm Source: The Hindu
Singh said the penchant to spend money on celebrity marketing “reeked of excess and flashiness.” However, Cohen and the Bankman-Fried defense are maneuvering around the fact that fraud nonetheless took place. Singh established that the funds used for these purchases were customers’. Therefore, Bankman-Fried’s defrauding of their investment was a present reality.
Sam Bankman-Fried’s lawyers are defending his excessive spending, which includes real estate investments, celebrity endorsement deals, and more. They are attempting to show that the spending was not reckless, but instead had benefits for the business. However, the prosecution has established that these purchases were made with customers’ funds, leaving Bankman-Fried open to fraud charges.
You can read more about this topic here: Watcher Guru: Bankman-Fried’s Lawyer Says FTX Spending Was Not ‘Reckless’