During the ongoing trial of Sam Bankman-Fried, the prosecution contends that the cryptocurrency empire associated with the FTX co-founder was constructed through deceitful means. In the introductory remarks delivered to a recently assembled jury at the federal court in Manhattan, US Attorney Thane Rehn portrayed SBF as an avaricious entrepreneur who illicitly appropriated billions from clients. Rehn characterized the empire as a precarious and unstable structure, akin to a “house of cards.”
“He had wealth, he had power, he had influence,” Rehn says in the statement. “But all of that — all of it — was built on lies.”
The US government has accused Sam Bankman-Fried of embezzling billions of dollars from customers through his cryptocurrency exchange, FTX, in order to finance both his personal lifestyle and political campaigns. SBF is facing numerous charges of fraud and conspiracy as a result. Last year, Bankman-Fried’s cryptocurrency enterprise, FTX, experienced a shockingly substantial crash, resulting in the loss of billions of dollars for investors who had placed their trust in the company.
In pointing at SBF, US Attorney Thane Rehn declared, “This individual took billions of dollars from thousands of individuals.” Prosecutors additionally assert that Sam Bankman-Fried utilized others to engage in theft and manipulation of customers while concealing his actions. Sam Bankman-Fried’s attorney, Mark Cohen, is countering the prosecution’s claims, asserting, “Sam did not engage in fraud against anyone.” Cohen contends that his client consistently acted in good faith throughout the ascent and decline of his startup. The defense also argues that SBF and his co-founders were “developing their venture while it was already in motion.” Bankman-Fried has entered a plea of not guilty to seven charges of fraud and conspiracy. Attorneys on both sides are currently presenting their respective cases.
Day One of Sam Bankman-Fried’s Trial
On the first day of FTX founder Sam Bankman-Fried’s criminal trial, the mention of cryptocurrencies included Bitcoin, Ethereum, Dogecoin, and Solana. Surprisingly, the exchange’s native token, FTT, remained unmentioned. Within the cryptocurrency community, FTT’s sharp decline in November is closely associated with FTX’s sudden downfall. However, during the initial proceedings in a New York district court, federal prosecutors seemed to take a deliberate approach to introduce jurors to the world of digital assets.
Assistant U.S. Attorney Thane Rehn sought to encapsulate the essence of the case by stating, “This man stole billions of dollars from thousands of people,” while pointing at Sam Bankman-Fried. FTX filed for bankruptcy last year following a significant drop in FTT’s price, triggering a rush of customer withdrawals. The exchange’s failure to return customer funds as they sought to exit ultimately revealed that FTX did not hold 1:1 reserves of customer assets.
It had been reported that Bankman-Fried’s trading firm, Alameda Research, held substantial amounts of the FTT token on its balance sheet, and Binance CEO Changpeng Zhao indicated his exchange’s intention to sell its FTT holdings before FTX’s collapse. Bankman-Fried is facing seven charges of fraud and conspiracy and has pleaded not guilty. His lead lawyer, Mark Cohen of Cohen & Gresser, suggested that FTX’s troubles were the result of a “perfect storm” despite Bankman-Fried’s acting in “good faith” and taking “reasonable business measures.”
Cohen’s reference to FTT likely pertained to the diversion of customer funds from FTX to Alameda, which he argued were loans and not a closely guarded secret, as claimed by prosecutors. The trial’s focus on FTT differed from other tokens that were discussed, as the government’s first two witnesses were called to the stand. The first witness, commodities trader Marc-Antoine Julliard, introduced cryptocurrencies as assets to the jury by mentioning Bitcoin and Ethereum and recounting a deposit of Dogecoin into his FTX account. The second witness, Adam Yedidia, a former employee of Alameda and FTX, mentioned Bitcoin, Ethereum, and Solana as popular cryptocurrencies and revealed his resignation from FTX after discovering the use of customer deposits to repay Alameda Research’s loans to creditors.