FTX Trial Judge Mixes Humor with Impatience as Defense Tests Limits

Sam Bankman-Fried's fraud trial has been filled with complex testimony on computer code, cryptocurrency, and corporate finance. Nevertheless, U.S. District Judge Lewis Kaplan, known for his dry sense of humor, has injected occasional moments of levity into the proceedings.

Kaplan, a seasoned judge in Manhattan federal court, has not hesitated to reprimand the defense attorneys, accusing them of asking repetitive questions and attempting to break records for the longest trial, all in front of the jury. Sam Bankman-Fried faces two counts of fraud and five counts of conspiracy, to which he has pleaded not guilty.

While Judge Kaplan is known for his no-nonsense courtroom demeanor, he has sprinkled the trial with witty comebacks and self-deprecating quips. When a prospective juror expressed confusion about cryptocurrency, Kaplan humorously remarked that the juror had plenty of company. And when another juror mentioned slight hearing loss, Kaplan quipped that he shared the same ailment due to his age.

During testimony, after prosecutors displayed an FTX television advertisement featuring Tom Brady, who endorsed FTX as the "safest and easiest way to buy and sell crypto," Kaplan humorously asked who Tom Brady was. Ultimately, the jury will decide Bankman-Fried's guilt or innocence, but Judge Kaplan has the final say on the legal arguments and lines of questioning presented by the lawyers. If convicted, he would also be responsible for sentencing Bankman-Fried.

Throughout the trial's initial days, Kaplan urged the defense to expedite their questioning of prosecution witnesses, especially when he deemed the questions repetitive.

On one occasion, after defense lawyer David Lisner repeatedly questioned prosecution witness Matt Huang about his decision to invest in FTX despite the absence of a board of directors, Kaplan called both sides to the bench. In a nonchalant manner, he reminded them that they had already covered the topic extensively and emphasized that the goal was not to set a record for the longest trial.

Before the trial began, Judge Kaplan issued several significant rulings against the defense, including the exclusion of some proposed expert witnesses and the prohibition of certain trial arguments. However, perhaps the most impactful decision was his revocation of Bankman-Fried's bail on August 11. This decision was made after Kaplan found evidence that Bankman-Fried had likely tampered with witnesses on multiple occasions, including sharing private writings of his former colleague and ex-girlfriend, Caroline Ellison, with a reporter. Kaplan justified his decision to detain Bankman-Fried by stating that he had repeatedly approached the line of violating bail conditions without committing another crime.

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Reuters