“He is Cooked” – Popular Crypto Lawyer Comments on Bankman-Fried Trial

By Aaron Feuerstein October 27, 2023 In Sam Bankman-Fried
Source: Adobe Stock
  • The SBF case has little to do with crypto; instead, it underscores the role trad-fi played.
  • SBF continues to look for blame elsewhere and portray himself as the victim.
  • Bankman-Fried’s biggest chance is now to convince even a single member of the jury that he did not act out of ‘intent.’

John E. Deaton, the lawyer who represented over 75,000 XRP holders as friends of the court in the case of the United States Securities and Exchange Commission (SEC) against Ripple is well known for his no-nonsense talk. He recently gave an interview on Fox Business where he talked to Charles V Payne who questioned the accountability of Wall Street and Silicon Valley over the FTX and Bankman-Fried debacle.

It’s Not About Crypto

Payne highlighted that Bankman-Fried had support from the rich and famous as well as institutions and corporations. Deaton agreed and explained that the FTX fraud case had very little to do with crypto itself and all to do with greed and criminal activity.

The lawyer claimed that Bankman-Fried neither understood nor cared about Bitcoin (BTC) or crypto in general. The main agenda for SBF, according to Deaton, was the stealing of customer funds and financing his own political agenda.

That is why Deaton believes Bankman-Fried has all the evidence stacked against him. Deaton stated,

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Unless he [Bankman-Fried] has Taylor Swift come in as a character witness this boy is cooked.

John E. Deaton

“It’s not His Fault”

Bankman-Fried previously stated that he did not use customer funds. His recent claims that he didn’t know it was illegal will now be closely examined.

As Deaton says, “He was unaware of his own user agreement. Lawyers made him think believe that he could use customer money anyway he saw fit.” He cheekily added that SBF probably thought he “co-owned” the money when customers deposited it and that next, he possibly wants to blame it all on his Adderall.

Bankman-Fried’s Evasive Testimony

Meanwhile, before Bankman-Fried could address the jury, Judge Kaplan dismissed them to first assess the relevance of his statements concerning the FTX lawyers’ involvement in the alleged fraud. Bankman-Fried was often evasive during questioning, frequently stating he couldn’t remember certain details. He emphasised the significant role FTX lawyers played in creating company policies and their involvement during financial issues.

In response to Bankman-Fried’s evasiveness, Judge Kaplan remarked, “the witness has what I’ll simply call an interesting way of responding to questions.”

It is unlikely that this way of answering things will fly with the prosecutors let alone the Judge much longer. Ultimately, for SBF, it hinges on whether he can convince a single juror that he didn’t act with intent. If he is able to pull that off, Deaton thinks that is the only way to save himself.

Aaron Feuerstein
Author

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.

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