Crypto’s golden boy Sam Bankman-Fried took the stand.

Taking the Stand

The Story

Crypto’s golden boy took the stand.

Who are we talking about?

Sam Bankman-Fried. Yesterday, the judge overseeing FTX’s case sent jurors home and spent some one-on-one time with SBF to hear what he had to say. The FTX founder is on trial in NYC, facing seven counts of fraud and conspiracy for mismanaging funds between his crypto exchange and hedge fund Alameda Research. At one point during the testimony, the judge reportedly became frustrated with SBF’s vague answers and told him “listen to the question, and answer the question directly.” SBF did admit that he “skimmed” FTX’s Terms of Service and that he thought giving Alameda Research some of FTX's money was legit. However, SBF’s inner circle (including his ex-girlfriend) have given a different picture.

What do you mean?

Former CEO of Alameda Research Caroline Ellison painted her ex-boyfriend SBF as the mastermind. She said he “was the one who directed us to take customer money to repay our loans.” FTX co-founder Gary Wang said the final call to move around customer funds was SBF’s. Former head of engineering Nishad Singh testified that FTX made political donations using stolen customer funds. All three pleaded guilty to charges tied to FTX’s fall. Today, SBF is expected to take the stand again with a full jury. As for where the case stands, the judge said it’s in the “home stretch.”

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It's rare for a defendant to take the stand in their own trial, but it's in the SBF playbook as he tries to establish himself as a CEO who acted in “good faith.” This is one of the most-watched trials of the year and could serve as a warning to others in crypto.

Where tensions could be rising even more…

The Middle East. Yesterday, the US carried out airstrikes on two sites in eastern Syria linked to Iranian-backed militia groups. Since last week, the groups have been suspected of carrying out more than a dozen drone and missile attacks against US forces in Iraq and Syria — injuring 21 service members. Defense Secretary Lloyd Austin said the goal of the strikes is to show that “attacks against US forces are unacceptable and must stop.” Austin emphasized that the strikes are “separate and distinct” from the latest Israel-Hamas war. However, the US's actions come amid growing concern that the war could engulf the rest of the region. Meanwhile, the US said it deployed an additional 900 troops to the Middle East to bolster defenses amid the drone attacks. 

Where there are updates…

Maine. Yesterday, police issued an arrest warrant for the 40-year-old suspect in the Lewiston mass shooting that left at least 18 people dead. Shelter-in-place orders remained in effect for Lewiston and surrounding towns this morning, as more than 350 police officers searched for the “armed and dangerous” man. Authorities said the suspect had undergone a medical evaluation earlier this year after “behaving erratically” while training with his Army Reserve unit. This is believed to be the 36th mass shooting in the US this year alone. 

Who has Georgia on their mind...

A federal judge. Yesterday, a federal judge ordered state legislators to redraw Georgia's congressional district lines before the 2024 election, pointing to the Voting Rights Act. The court agreed that the Republican-drawn map illegally weakened the power of Black voters. Now, legislators have until early December to adopt a new district plan that contains a Black majority or near-majority district. This is one of at least half a dozen redistricting cases in the US that could influence which party wins control of the House in 2024. Also happening in the South: North Carolina Republicans signed off on a legislative map that could flip as many as four House seats in their favor. It’s not clear if the new map will be challenged in the courts.

Who’s looking for aid…

The White House. Earlier this week, the Biden administration asked Congress for $16 billion to fund child care programs. If approved, the money would go to more than 225,000 child care providers across the country. About 3.2 million children could be affected if funding doesn't come through, forcing millions of families to come up with a new child care plan. Programs were able to stay afloat with the help of COVID aid packages — but that piggy bank ran dry at the end of September. The request is part of a proposed $56 billion package for domestic needs.

PS: Want to know how your company stacks up against others on its child care and work flexibility policies? We have a database.

What’s on the up and up… 

The US’s GDP. Yesterday, the Commerce Dept said the US economy grew at a 4.9% annual rate in the third quarter — the best quarterly performance since late 2021. The reasons for the bump: a strong labor market and slowing inflation. Sign up for our Skimm Money newsletter for an interview today with Joelle Gamble, the White House’s deputy director of the National Economic Council.

While Maggie Smith will never go out of style…

Neither will Taylor Swift’s latest rerelease.

Who dropped a royal trailer…

“The Crown.”