Sam Bankman-Fried, the CEO of the cryptocurrency exchange FTX, recently underwent a trial in the United States District Court for the Southern District of New York. The trial was to determine whether or not Bankman-Fried had violated the Commodity Exchange Act (CEA) by trading derivatives without registering as a Futures Commission Merchant (FCM). On the fourth day of the trial, the proceedings were focused on the testimony of two witnesses: Bankman-Fried himself and a former employee of FTX.

Bankman-Fried testified that he had been aware of the CEA’s requirements for FCM registration but had not registered because he believed that FTX’s activities did not fall within the scope of the CEA. He also stated that he had consulted with legal counsel prior to launching FTX and had received advice that the exchange was not subject to the CEA.

The former FTX employee testified that he had been unaware of the CEA’s registration requirements prior to joining the company. He also stated that he had not received any formal training on the CEA or FCM registration prior to working at FTX.

The testimony provided by Bankman-Fried and the former employee was used to support the defense’s argument that Bankman-Fried had not willfully violated the CEA. The defense also argued that Bankman-Fried had acted in good faith and had taken reasonable steps to ensure that FTX was operating within the law.

At the end of the fourth day of proceedings, the jury had yet to reach a verdict. The trial is expected to continue for several more days as both sides present their arguments and evidence. It remains to be seen whether or not Bankman-Fried will be found guilty of violating the CEA.