In a candid conversation with Bloomberg, Stanford Law School professor David Mills, the legal mind behind Sam Bankman-Fried’s defense in the recent FTX fraud trial, discloses the immense challenges faced from the outset. Mills admits to the arduous nature of defending a case where multiple founders testify against the accused, describing it as “almost impossible” to secure a victory.

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FTX Trial Update

Mills elaborates on Bankman-Fried’s reluctance to heed legal counsel, coupled with damaging testimonies from former associates, leaving the FTX founder in a precarious position. Mills further adds,

“Even if they’re all lying through their teeth, it’s really, really hard to win a case like that.”

The report delves into Mills’ recommended defense strategy, suggesting that acknowledging the allegations and emphasizing Bankman-Fried’s intent to rescue the company from bankruptcy could have been a more viable approach. “I thought there was a really good story there. But he can’t tell the story that all these people are lying. You got five people who say one thing, one person says another thing. Well, you’ve got no shot, zero,” Mills explains.

Highlighting Bankman-Fried’s unsuccessful attempts at cross-examination, Mills describes him as “the worst person I’ve ever seen do a cross-examination.” The lawyer, businessman, and academic discloses his involvement in the case, offering his expertise at the request of Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, both close friends. Mills took on the case pro bono, emphasizing his friendship and passion for criminal law as driving factors.

Despite his dedication, Mills admits that emotional involvement on a deep personal level, especially in cases close to home, is something he won’t repeat. The looming outcome of the trial and the impending sentencing of Bankman-Fried, found guilty on seven charges, including wire fraud, securities fraud, and money laundering conspiracy, has been an emotionally charged experience.

The 31-year-old entrepreneur is scheduled for sentencing on March 28, 2024, with New York Judge Lewis Kaplan presiding. Kaplan will determine the duration of Bankman-Fried’s sentence, considering recommendations from government prosecutors. The case has garnered significant attention, reflecting the high stakes and intricate dynamics of the FTX fraud trial.

FTX Trial Quick Summary

FTX Founder’s Trial Challenge:

• Defense lawyer reveals trial difficulty, citing founder’s reluctance and damaging testimonies.
• Mills suggests acknowledging allegations, emphasizing intent to save FTX from bankruptcy.
• Bankman-Fried’s cross-examination skills criticized; lawyer engaged pro bono due to personal ties.

Legal Strategy Insights:

• Mills suggests admitting allegations and framing Bankman-Fried’s actions as saving the company.
• Emphasizes the difficulty of countering multiple founder testimonies even if untruthful.
• Describes recommended defense strategy and the challenges faced in presenting a compelling narrative.

Trial Outcome and Sentencing:

• Bankman-Fried found guilty on seven charges, including wire fraud and money laundering conspiracy.
• Sentencing scheduled for March 28, 2024; New York Judge Lewis Kaplan to determine duration.
• Emotional involvement in close relationships prompts lawyer Mills to reconsider deep personal engagement in such cases.