Sam Bankman-Fried trial jury sees his profane messages about regulators

By Luc Cohen

NEW YORK (Reuters) -The prosecution in Sam Bankman-Fried’s fraud trial on Wednesday confirmed jurors a slew of profane messages he despatched journalists complaining about regulators, difficult the picture the FTX founder cultivated as a proponent of cryptocurrency oversight.

U.S. District Decide Lewis Kaplan overruled objections by Bankman-Fried’s attorneys and allowed the jurors in Manhattan federal courtroom to see a profane message he despatched to a reporter for the information web site Vox days after FTX collapsed in November 2022 complaining that regulators “make the whole lot worse.”

Jurors additionally noticed a profanity-laced message Bankman-Fried despatched a journalist for crypto information web site The Block on Twitter, the social media platform now known as X, that made reference to U.S. Securities and Alternate Fee Chair Gary Gensler.

Within the message, Bankman-Fried prompt that U.S. lawmakers had been “dumb” and “about handy the trade to Gensler on a silver platter.” The SEC is considered in cryptocurrency circles as extra hostile to the trade than one other federal company, the Commodity Futures Buying and selling Fee.

Within the trial, which started on Oct. 3, Bankman-Fried stands accused of looting billions of {dollars} in FTX buyer funds to make investments, donate to U.S. political campaigns and prop up his hedge fund, Alameda Analysis. Prosecutors have mentioned his political donations had been meant to advertise laws favorable to cryptocurrency.

The previous billionaire has pleaded not responsible to 2 counts of fraud and 5 counts of conspiracy. Bankman-Fried, 31, might face a long time in jail if convicted.

Bankman-Fried’s attorneys had sought to bar prosecutors from introducing the messages with the Vox reporter as proof, arguing that the defendant despatched the “off-the-cuff musings” after the time interval at challenge within the trial and that the language would bias the jury in opposition to him.

In arguing for permitting the jury to see the messages, prosecutor Danielle Sassoon mentioned that they had been “extremely probative” of his true frame of mind on the time, noting that Bankman-Fried later instructed the reporter he thought the dialog had been off the report.

Vox in the end revealed the messages.

Bankman-Fried wrote that his prior statements in favor of regulating cryptocurrency had been “simply PR,” which means public relations.

“It would not mirror his trustworthy intent on the time when he was partaking with regulators,” protection lawyer Christian Everdell mentioned outdoors the jury’s presence, arguing in opposition to permitting the messages as proof.

Prosecutors have mentioned they might relaxation their case as quickly as Oct. 26. Bankman-Fried’s attorneys have mentioned he’s contemplating testifying in his personal protection.

(Reporting by Luc Cohen in New York; Modifying by Will Dunham)