Former FTX Chief Executive Sam Bankman-Fried exits the Manhattan federal court in New York
Reuters

KEY POINTS

  • During the cross-examination, Bankman-Fried rephrased the prosecutor's questions before answering them
  • Judge Kaplan reminded Bankman-Fried to "listen and answer directly"
  • The judge said he will consider whether the crypto mogul's statements could be shared with the jury

Judge Lewis Kaplan, who is hearing the criminal fraud case of Sam Bankman-Fried, seemingly grew tired of the crypto mogul's meandering testimony, who apologized 11 times while on the witness stand Thursday.

Bankman-Fried, aka SBF, who was praised by congresswoman Maxine Waters, D-Calif., in December for his "candidness," was blasted by the senior district judge for his vague and meandering testimony.

The 31-year-old MIT graduate and former Jane Street trader who rose to fame with his crypto empires – FTX and Alameda Research – took the witness stand in a downtown Manhattan courtroom Thursday, the first day of the criminal fraud trial this week.

It turned out to be a lengthy trial day and at the end of the hearing Thursday, the judge became skeptical of the arguments. He compared the situation to that of someone who purchased a house with funds he robbed from a bank but did not tell his real estate lawyer where the funds really came from.

"I'm going beyond my tether here. Part of the problem is that the witness has an interesting way of responding to questions," Kaplan said.

During the cross-examination, Bankman-Fried rephrased the prosecutor's questions before answering them and at some point, told Assistant US Attorney Danielle Sassoon that he would try to answer the "question I understand you to be trying to ask."

When Judge Kaplan reminded Bankman-Fried to "listen and answer directly," he responded by saying, "I apologize."

The judge said he would issue a ruling Friday morning.

Judge Kaplan sent the jury home before Bankman-Fried took the stand. "There are areas of testimony that the government contends the jury should not hear," he explained.

Before Bankman-Fried's testimony, the defense presented two of its witnesses – the crypto mogul's lawyer in the Bahamas, Krystal Rolle, and database expert Joseph Pimbley.

Judge Kaplan said he will consider whether Bankman-Fried's statements could be shared with the jury.

The criminal fraud trial, considered one of the biggest in the history of the United States since Bernie Madoff, will resume Friday.

Read more