FTX Founder Sam Bankman Fried: The Trial Begins

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FTX Founder Sam Bankman Fried: The Trial Begins

The first week of Sam Bankman Fried’s trial has just begun. This trial is one of the top stories of the crypto world today. Crypto folks have called it “a galactic embarrassment” and the “biggest crypto frauds in US history.”

The trial against Sam Bankman Fried, the founder of bankrupt crypto exchange FTX, has started, and after one week of developments of the case are as follows:

SBF Trial Updates

  • Witnesses were asked to elaborate on some topics to establish the motives of Sam Bankman Fried.
  • Cross-examination of ex-FTX employee Adam Yedida. The defense pointed out Bankman’s illegal actions to make sure customers couldn’t access the platform.
  • Matt Huang, founder of Paradigm, a crypto investment firm, was brought in next. He spoke about the various ways that Bankman allegedly misled the investors.
  • Gary Wang, the CTO of FTX, testified next. He admitted to crimes such as wire fraud, commodities fraud, and securities fraud. Moreover, he took a few names. Sam Bankman Fried, Nishad Singh, and Caroline Ellison were among those who committed those crimes with him.
  • We are yet to hear when the cooperating witnesses FTX director of engineering Nishad Singh and Alameda Research CEO Caroline Ellison will testify.

The trial will continue on Tuesday morning. Bankman is facing thirteen charges as of now. Seven of these charges will be heard at the first two trials. Some of the important charges being heard on the initial trial are:

  • Committing wire fraud on FTX customers
  • Wire fraud on lenders to Alameda Research
  • Conspiracy to commit forgery on customers of FTX for the purchase and sale of derivatives
  • Conspiracy to commit securities fraud on investors
  • Conspiracy to commit money laundering

It is evident that the former crypto billionaire is staring down decades in prison.

What is the SBF Case?

The so-called ‘king of crypto’ entered the crypto market as a savior for smaller firms and helped them in revolutionizing the financial world. But, only a few months later, he was arrested. Sam Bankman Fried was charged with fraud, and his exchange collapsed into bankruptcy. More importantly, it is reported that more than $8 billion are missing.

The FTX exchange was worth $32 billion at its peak. The crash of FTX caused many A-list investors and businessmen to lose all of their funds. Bankman was arrested in December 2022 and was denied bail. Now, the trial began in October 2023. Bankman pleaded not guilty to all seven charges that are being heard at the first trial. If convicted, he will face a very long sentence. All of his partners, including Gary Wang and Carolin Ellison, have pleaded guilty and are openly testifying against Bankman.

Conclusion

This dramatic fall from grace is an eye-opener for the wider crypto industry. Crypto enthusiasts and investors are now eagerly waiting for the regulations to make sure something like this does not happen again.

 

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