The trial of Sam Bankman-Fried, the founder and former CEO of the collapsed crypto exchange FTX, is underway with twelve jurors selected and opening statements made in a Manhattan courtroom.
In their opening statement, prosecutors alleged that Bankman-Fried committed a “massive fraud.” Assistant U.S. Attorney Thane Rehn stated that Bankman-Fried’s wealth, power, and influence were built on lies. Bankman-Fried faces seven charges, including wire fraud and conspiracy to commit money laundering related to FTX’s operation.
The defense, however, countered the prosecution’s claims of fraud by attributing issues to startup challenges, such as the absence of a chief risk officer at the exchange, and by pointing to Caroline Ellison, the co-CEO of Alameda Research (FTX’s sister company) and Bankman-Fried’s former girlfriend, who has already pleaded guilty to fraud and will testify for the prosecution. Mark Cohen, Bankman-Fried’s defense lawyer, asserted that Bankman-Fried acted in good faith.
The trial began with jury selection, where more than 80 potential jurors were questioned to assess their suitability for the case. U.S. District Judge Lewis Kaplan posed questions to determine their impartiality and knowledge of the case. Twelve jurors and six alternates were eventually selected. In a U.S. criminal case, a unanimous verdict by the jury is required.
The jury selection process also shed light on potential witnesses in the trial, including investor Anthony Scaramucci, former Alameda Research co-CEO Sam Trabucco, and crypto exchange Binance.
The prosecution’s first witnesses included commodities trader Marc Antoine Julliard and Adam Yedidia, a former Alameda Research employee and friend of Bankman-Fried. Yedidia mentioned that as an FTX developer, he may have inadvertently contributed to a crime.
The trial will continue as witness testimonies and evidence are presented.
By FCCT Editorial Team
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