Sam Bankman-Fried's trial begins in Manhattan for alleged crypto scam
Bankman-Fried has pleaded not guilty and is likely to argue that he did not steal money
cryptocurrency
Highlights
- Sam Bankman-Fried’s trial resume in Manhattan court
- Bankman-Fried has pleaded not guilty and is likely to argue that he did not steal money
- SBF appeared at the trial in a suit and tie, a departure from his previous casual attire
Sam Bankman-Fried, a 31-year-old former billionaire, is facing trial on charges of stealing billions of dollars from customers of his bankrupt cryptocurrency exchange, FTX. The trial resumed after a year-long delay, with proceedings aiming to select a jury and proceed with opening statements.
U.S. District Judge Lewis Kaplan has chosen a pool of nearly 50 qualified jurors from a larger group. Those unable to serve for personal or professional reasons or unable to provide an impartial verdict were dismissed. The final panel of 12 jurors and six alternates is expected to be selected on Wednesday.
I'm desperately hoping that SBF has the same success rate in court that the SEC is having. 🤣 #LUNC pic.twitter.com/NV6r3IXD0Z
— Derek (@kimmyboy2) October 4, 2023
Prosecution's case
Prosecutors from the U.S. Attorney's office in Manhattan allege that Bankman-Fried misappropriated FTX customer funds, using them to support his hedge fund, Alameda Research, purchase luxury real estate, and contribute to U.S. political campaigns. They plan to call three former associates, including Caroline Ellison, the former Alameda chief executive, and Nishad Singh and Gary Wang, former FTX executives, as witnesses. All three have pleaded guilty and agreed to cooperate with prosecutors.
Bankman-Fried's defense
Bankman-Fried has pleaded not guilty and is likely to argue that he did not steal money but may have failed in risk management. His defense team may try to shift blame onto cooperating witnesses, suggesting they are implicating Bankman-Fried in exchange for lenient sentences.
Detention and appearance
Bankman-Fried has been in detention at the Metropolitan Detention Center in Brooklyn since August 11, facing allegations of tampering with witnesses. He appeared at the trial in a suit and tie, a departure from his previous casual attire.
The trial of Sam Bankman-Fried is a significant event in the cryptocurrency world, highlighting allegations of financial misconduct and misuse of customer funds. The proceedings will shed light on the cryptocurrency industry's regulatory challenges and the legal consequences for those involved in such cases.
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