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personpersonTareq MoradTareq MoradCalgary hotel owner and operator who held an account on FTX.← All People
Witness

Tareq Morad

Calgary hotel owner and operator who held an account on FTX.

AppearedFederal Criminal Trial
86 lines·5 proceedings·2 mentions

About

Tareq Morad testified for the prosecution about opening an FTX account in spring 2021 and funding it with approximately $500,000 through wire transfers. The instructions named North Dimension Inc., an entity he said he had not previously heard of, as beneficiary. He regarded the assets displayed in his account as his money and said he neither knew of nor agreed to their lending or third-party use.

Morad said a withdrawal assurance he recalled from Samuel Bankman-Fried made him feel relieved, so he did not immediately withdraw his funds. His withdrawal attempt the next day did not process. After the court denied a defense request to remove a date Morad said he had added himself, the account screenshot was admitted. Morad testified that it showed a balance of $257,948.53 on November 10, 2022, which he had been unable to withdraw.

On cross-examination, Morad acknowledged experience with several cryptocurrency exchanges and agreed that market decline accounted for the reduction from approximately $500,000 deposited to approximately $257,000 remaining. He also said he had not read FTX's terms of service. Morad could not explain how his expectation that FTX would not lend his assets had developed; when asked for a statement from FTX, he cited the withdrawal assurance as support for believing his deposited money was there. On redirect, he clarified that he believed he was asked to review, or had an opportunity to review, the terms when opening the account.

The parties later disputed the significance of his testimony. The defense argued that his exchange experience, unread terms, and reliance on a tweet weakened the government's customer-fraud proof. The prosecution responded that his understanding of the displayed balance was reasonable and that customer expectations arose from representations extending beyond the terms of service.

Trial Record (5)

FederalFederal Criminal TrialOct 3, 2023 – Nov 2, 2023Called by prosecution

Tareq Morad testified that he wired approximately $500,000 to fund an FTX account, expected to control the displayed assets, and later could not withdraw his remaining balance. Cross-examination tested those expectations by addressing his exchange experience, market losses, unread terms of service, and reliance on a recalled withdrawal assurance.

Day 9

DirectTareq Morad — DirectTareq MoradSamuel Raymond11highlights67lines spoken

Summary

Tareq Morad traced roughly $500,000 in FTX funding through North Dimension, described his expectations that deposits remained under his control, and testified that he relied on a withdrawal assurance before an unsuccessful attempt to recover a documented $257,948.53 balance.

Highlights (11)

evidence eventMorad identified FTX's account-funding page and testified that he chose the wire-transfer option.Open in transcript →
testimony highlightMorad identified FTX wire instructions that listed North Dimension Inc. as the beneficiary, a company he had never previously heard of and did not know was connected to FTX.Open in transcript →
evidence eventGovernment Exhibit 540, Morad's completed personal wire transfer, was admitted without objection and published; the document listed Silvergate Bank as the destination bank and North Dimension Inc. as beneficiary.Open in transcript →
testimony highlightMorad testified that he considered his FTX balance his money, expected to control its use and withdrawal, and had neither known of nor agreed to a program permitting others to borrow or lend his assets.Open in transcript →
Show all 11 highlights
Quote“I presumed that the balances that were listed there was my money that I had available to withdraw, trade, or do whatever it was of my choice.”— Tareq MoradMorad stated his understanding that the displayed account balance remained under his control and available for withdrawal or trading.Open in transcript →
Quote“That would be a different level of exposure, and I think that it would just be my rights to know if someone was using my money for anything other than what I was aware of.”— Tareq MoradMorad explained why undisclosed borrowing or use of his deposits would have mattered to him.Open in transcript →
objectionAfter a hearsay objection to testimony about a Forbes cover, the judge directed Morad to focus on his own conclusion; Morad said he had viewed Bankman-Fried as a successful, legitimate entrepreneur.Open in transcript →
testimony highlightMorad recalled a Bankman-Fried tweet assuring customers that funds were present and withdrawals would be covered. He said the message relieved him, he did not immediately withdraw, and his withdrawal attempt the following day failed.Open in transcript →
Quote“I was very relieved, happy to hear from the leader of the company to know and reassuring and knowing that the money was there and it was just rumors.”— Tareq MoradMorad described his reaction to the withdrawal assurance he recalled reading and why he did not immediately try to withdraw.Open in transcript →
rulingThe defense requested removal of the date Morad had added to his account screenshot. The judge denied the request and admitted Government Exhibit 539; Morad then identified a $257,948.53 balance and testified that he still had not withdrawn the funds.Open in transcript →
Quote“I wanted to make sure that I had evidence or proof that I did have money on the platform in case it wasn't functioning anymore or whichever.”— Tareq MoradMorad explained why he preserved a screenshot of his FTX balance during the withdrawal crisis.Open in transcript →
CrossTareq Morad — CrossTareq MoradDavid F. Lisner7highlights17lines spoken

Summary

Morad acknowledged prior cryptocurrency-exchange experience, market-driven account losses, and that he had not read FTX's terms, while identifying the Twitter withdrawal assurance as his principal recalled basis for believing his deposited money was present.

Highlights (7)

Quote“Binance, Coinsquare, Bittrex. I believe I had an account open with Poloniex. So I had a number of different platforms that I was using prior.”— Tareq MoradMorad described substantial prior experience using cryptocurrency exchanges before opening his FTX account.Open in transcript →
objectionThe court sustained the government's hearsay objection when the defense asked whether Morad had heard of anyone unable to withdraw before November 2022.Open in transcript →
admissionMorad agreed that the decline from approximately $500,000 deposited to approximately $257,000 remaining resulted from the market decline.Open in transcript →
testimony highlightMorad could not explain how his expectation that FTX would not lend his assets developed, but identified the Twitter withdrawal assurance as support for his conclusion that his deposited money was present.Open in transcript →
Show all 7 highlights
Quote“I can't say that's -- how that understanding developed, I am not sure.”— Tareq MoradMorad could not identify how his expectation that FTX would refrain from lending his assets had developed.Open in transcript →
Quote“The statement that was on Twitter the day of, that all withdrawals would be covered, so that is primarily meaning that your money is there.”— Tareq MoradMorad tied his understanding that his deposited money remained present to the withdrawal assurance he saw on Twitter.Open in transcript →
admissionIn response to the court's questions, Morad explained that users could click to read the terms of service and confirmed that he did not do so or check their length.Open in transcript →

Day 18

Day 19