The trial of Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, is nearing its end, with the prosecution set to conclude their case on October 26. Over the past three weeks, the prosecution has presented nearly 20 testimonies, including those of former FTX employees, customers, investors, government officials, and law enforcement agents. The central argument put forth by the prosecution is that Bankman-Fried intentionally deceived all these parties and was responsible for the $8 billion gap between FTX and Alameda Research in November 2022.
While the prosecution’s case is almost complete, Bankman-Fried’s defense team is yet to confirm whether they will present a defense. It is not mandatory for attorneys to offer a defense in criminal trials, but assuming they do, their case will also begin on October 26. Mark Cohen and Christian Everdell, who lead Bankman-Fried’s counsel, have struggled to construct a compelling narrative for the jurors. They even overlooked crucial arguments during the cross-examination of Bankman-Fried’s former close friends, including Caroline Ellison, Nishad Singh, Adam Yedidia, and Gary Wang, who cooperated with the government and accused Bankman-Fried of directing them to commit crimes.
A legal expert observing the trial stated that when a case is initiated by the government, there is a high likelihood of an indictment, indicating the significant challenge the defense faces. However, the burden of proving the alleged crimes lies with the prosecutors.
Last week, Singh, the former engineering director of FTX, testified that Bankman-Fried instructed him to make investments using loans from Alameda, unaware that the funds were tied to FTX customers’ deposits. Singh could face up to 75 years in prison for charges related to defrauding users of the crypto exchange. Additionally, District Judge Lewis Kaplan expressed frustration with both parties’ lawyers when a witness, who fled Texas for the trial, provided minimal information during their testimony.
Another noteworthy development in the trial was the presentation of a spreadsheet by FTX’s former general counsel, Can Sun, showing $2.1 billion in loans to Bankman-Fried and other executives. Sun claimed to be unaware of the exchange’s commingling of funds with Alameda and is also cooperating with the government.
If convicted of fraud and conspiracy to commit fraud, Bankman-Fried could face a sentence of up to 115 years in prison. The outcome of this trial has significant implications for the future of FTX and the cryptocurrency industry as a whole.
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