In the world of cryptocurrencies, nothing draws more attention today than the case of the former CEO of FTX exchange, Sam Bankman-Fried, also known as SBF. The trial, which started in New York, is quickly gaining momentum, and allegations of financial malfeasance are shattering the trust in one of the once-largest cryptocurrency exchanges in the world.
The lawsuit against Sam Bankman-Fried, the face and leader of the FTX cryptocurrency exchange, taking place in a New York court, is drawing the attention of both the media and the blockchain technology community. A 12-member jury and six alternates were chosen from about 50 candidates to consider the evidence and testimonies in this significant case.
On one side, Thane Rehn, the US Assistant Attorney, presented charges saying that SBF used FTX client funds to enrich himself, and also manipulated policies through donations and testimonials, claiming to be trustworthy. Particular emphasis was placed on November 2022, when key financial information about the exchange was revealed. According to Rehn, SBF had deceived not only clients but also employees, lawyers, and the general public.
In response, Mark Cohen, SBF’s defense attorney, pointed to Bankman-Fried’s ex-girlfriend, Caroline Ellison, and Binance’s CEO, Changpeng Zhao (CZ), as the main figures responsible for FTX’s problems. He claimed that Ellison did not take steps to secure investments from Alameda Research, despite pressure from SBF, and CZ’s posts on social media contributed to a mass selloff on FTX.
The defense portrayed the former CEO of FTX as a person acting in good faith in the face of the rapidly growing cryptocurrency market. Refuting allegations of squandering funds, they emphasized that legal expenditures, such as buying a luxury apartment in the Bahamas or collaborating with celebrities, are not crimes.
One cannot help but notice that Bankman-Fried appeared in court with a new hairstyle for the first time. There are many indications that Caroline Ellison and other former exchange directors might testify against him as the trial progresses.
It’s worth noting that the trial, which began on October 4th and will last about six weeks, is just the beginning of Bankman-Fried’s legal journey, who has denied seven charges related to alleged fraud in FTX. The entire cryptocurrency world is eagerly awaiting the conclusion of this high-profile trial.
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