Sam Bankman-Fried, the founder of FTX, took the stand on Thursday to defend himself against allegations of intentionally defrauding customers of his exchange. The trial has garnered attention, with SkyBridge Capital founder Anthony Scaramucci predicting a tough battle for Bankman-Fried against government prosecutors. Scaramucci stated in an interview with CNBC, “He’s gonna get skinned alive… There’s no way to escape. He thinks he’s going to outfox the prosecutors, but they’re very, very well experienced with this stuff.”
The Revelation of FTX’s Downfall
Scaramucci, who was closely associated with Bankman-Fried as a business partner during the downfall of FTX’s crypto empire in November 2022, noted the tense atmosphere within the “war room” at that time. He mentioned that a small group of FTX insiders had taken actions without informing most others at the company. This observation has now been substantiated by testimonies from Bankman-Fried’s inner circle, all of whom claim to have participated in the fraudulent activities orchestrated by their boss.
The Grim Future for Bankman-Fried
Scaramucci, once expressing positive sentiments about the defendant, has now labeled Bankman-Fried the “Bernie Madoff” of the crypto world. He believes that the “ninth circle of hell” awaits him and anticipates a lengthy prison sentence. Scaramucci remarked, “They’re going to point out all the contradictions, and they’re gonna prove the criminal intent with him on the stand. This is only going to add years to his sentence.”
Despite the revelations surrounding Bankman-Fried, Scaramucci revealed that prior to FTX’s collapse, the exchange had acquired a 30% stake in his investment firm. He stated that the fallout did not significantly harm his company as expected.
During the trial, Bankman-Fried argued that his understanding of FTX’s terms of service allowed for the exchange to loan funds to its sister-hedge fund, Alameda Research. CNN reported that the exchange founder appeared nervous and frequently fidgeted and sipped water during his examination on Thursday.
In addition, Scaramucci shared his thoughts on Michael Lewis’s new book about Bankman-Fried, noting that he found the portrayal of the founder to be lenient. He remarked, “He tries to be objective in the book, but only sort of… At the end of the day, Michael never would have written the book if he thought Sam was a supreme felon that many of us feel.” Scaramucci expressed his embarrassment at introducing Bankman-Fried to multiple heads of state, stating that he could not sense the founder’s “arrogance” a year ago.
