FTX founder Sam Bankman-Fried began his testimony in his fraud trial on Thursday, defending himself against charges of intentionally defrauding his exchange's customers.
Before taking the stand, SkyBridge Capital founder Anthony Scaramucci said that the former crypto mogul's chances against government prosecutors were very bleak.
“He will be skinned alive;” Scaramucci said in an interview with CNBC, Thursday. “There is no way to escape. He thought he was going to outwit the prosecutors, but they are very experienced at this.”
Scaramucci was close to Bankman-Fried as a business partner and had the opportunity to meet him in person during the collapse of his crypto empire in November 2022.
At the time, Scaramucci noted that the “war room” was “sad” and he already knew that a small group of people within FTX had been doing something without telling most of the other people at the company.
That previous assessment has now been corroborated by extensive testimony from Bankman-Fried's inner circle during the trial, all of whom claimed to have participated in the fraud led by their superiors.
Despite previously positive doubts about the defendant, Scaramucci has since dubbed Bankman-Fried the “Bernie Madoff” of crypto and said that the “ninth circle of hell” awaits him.
“They will show all the contradictions, and they will prove his criminal intent if he goes to trial,” Scaramucci continued. “This will only add years to his sentence.”
Before FTX's collapse, the exchange had purchased a 30% stake in Scaramucci's investment company. The founder said in April that the fallout was not as detrimental to his company as many thought.
So far, Bankman-Fried has argued that his understanding of FTX's terms of service would allow FTX to lend funds to its sister hedge fund, Alameda Research. According to CNN, the exchange's founder was restless and took frequent sips of water during Thursday's exam.
Scaramucci on SBF Characters
Scaramucci also commented on Michael Lewis' new book about Bankman-Fried, which crypto industry experts say treated the founder very well.
“He tries to be objective in his book, but that's all it is,” Scaramucci said. “In the end, Michael would never have written the book if he thought Sam was the ultimate villain as many of us do.”
Scaramucci stated that he could not sense Bankman-Fried's “arrogance” one year ago, and said he was “embarrassed” to have introduced her to so many heads of state.