Sam Bankman-Fried, the former CEO of now-bankrupt cryptocurrency exchange FTX, often testified against victims, former investors or two of his best friends. He remained silent when it was not in his favor.
But Caroline Ellison — the former CEO of cryptocurrency hedge fund Alameda Research, the prosecution’s star witness and Bankman-Fried’s on-again, off-again girlfriend — allegedly Wednesday afternoon provoked the most emotional reaction from the one-time cryptocurrency golden boy.
In a sidebar out of earshot of the jury or the courtroom audience, prosecutor Danielle Sassoon complained to Judge Lewis Kaplan, who was presiding over the trial, that Bankman-Fried “laughed loudly during Ellison’s testimony. Visibly shaking his head and laughing.” Wednesday lunch break. The former FTX CEO’s reaction was not readily apparent to members of the media occupying three benches at the back of the courtroom.
“I did not speak to the witness, but it may have had a clear impact on her, particularly given the history of the relationship, previous attempts to intimidate her, the power dynamics and their romantic relationship,” Sassoon reportedly said. “I would ask defense counsel to tell him to control his overt reaction to her testimony,” the transcript of the conversation reads.
Mark Cohen, one of Bankman Fried’s attorneys, was insulted by Sassoon’s characterization of his client. “Your honor, this is ridiculous,” he said. “The defendant is observing this trial. If he reacts in any way, that is for your honor and the jury to decide.”
He later added that the idea that Bankman-Fried was trying to intimidate Allison was “ridiculous” as Allison awkwardly swung back and forth as her testimony began, trying to find her ex-boyfriend and boss.
Bankman Fried’s alleged back-and-forth emotional reaction to his former confidant comes amid one of the most explosive days of testimony in one of the most publicized white-collar criminal cases in recent memory.
Bankman-Fried, once hailed as a quant and one of the world’s youngest billionaires, is not known for his direct expressions of emotion. “Smiling is the weirdest thing that I can’t do,” he once told Michael Lewis, who recently published a book about the former cryptocurrency tycoon.
In court Wednesday, Bankman-Fried appeared to have broken out of his usual temper, according to Sassoon. But Judge Kaplan didn’t notice Bankman-Fried’s alleged reaction. “I acknowledge that you were offended,” he told Cohen, “and I also acknowledge that Ms. Sassoon saw what she said she saw, or at least thought so.”
Kaplan later added: “If he’s doing anything, it should stop; if he’s not, there’s no harm, no foul.”
Svlook
