In a courtroom brimming with tension and anticipation, the trial of Sam Bankman-Fried, or SBF, the ex-CEO of FTX, took an intense turn as Adam Yedidia, a former member of Bankman-Fried’s inner circle, testified against his close friend. The trial, which commenced just a day prior, witnessed Yedidia taking the stand as a key witness for the prosecution. Their association traced back to their days as roommates at MIT, and Yedidia revealed he briefly worked at Alameda Research in 2017 before joining FTX as a developer in January 2021.
Yedidia, one of the eight individuals who resided in the notorious $35 million Bahamian penthouse apartment with Bankman-Fried between October 2021 and November 2022, disclosed that he hadn’t seen or heard from SBF since that time. His testimony shed light on the alleged misuse of customer deposits by FTX to repay loans, leading to his resignation from the company soon after discovering this practice.
Notably, unlike some other members in the inner circle, such as Nishad Singh and Caroline Ellison, Yedidia hadn’t faced charges and was testifying under an immunity grant from the government. He expressed concern that his work might have inadvertently facilitated criminal activities, making the immunity grant a necessity.
Yedidia also revealed his knowledge about US institutional investors trading on FTX.com through offshore entities, a detail likely emphasized to underscore the jurisdiction of the US court in the case. Prior to Yedidia’s testimony, the prosecution’s first witness, commodities trader Marc-Antoine Julliard, shared his experience of being unable to withdraw $100,000 from FTX in early November. Julliard characterized Bankman-Fried as someone who appeared sincere about benefiting the industry.
SBF Trial Recap
The trial’s opening statement by prosecutor Thane Rehn set a tone of grave allegations, accusing SBF of constructing his empire “on lies” while defrauding his investors and living a lavish life, including private jets [federal prosecutors filed a forfeiture bill of particulars on Oct. 5]. In response, the defense painted Bankman-Fried as a well-intentioned “math nerd,” asserting that FTX’s mismanagement stemmed from the firm’s rapid growth, overwhelming his decision-making capacity. Moreover, Bankman-Fried’s attorney, Cohen, attempted to shift blame onto former girlfriend Caroline Ellison, suggesting her financial decisions left the companies exposed to market shocks.
As the trial unfolds, the courtroom awaits further revelations in this high-stakes legal battle that could shape the future of FTX and its embattled founder, SBF.