Sam Bankman-Fried, the 31-year-old founder of the cryptocurrency exchange FTX, is facing fraud charges in a Manhattan federal court after a month-long trial. The prosecution argued that Bankman-Fried repeatedly promised his customers that their money was safe and guarded, even as he was stealing from them. Assistant US Attorney Danielle Sassoon stated that Bankman-Fried wanted to be a powerful player in the cryptocurrency world and was driven by a desire to gain influence and power. Sassoon argued that Bankman-Fried knew what he was doing was wrong, lied about it, and took steps to hide it.
The prosecution pointed out that FTX’s bankruptcy led to the loss of billions of dollars, and that Bankman-Fried was able to use FTX funds to fund his other business ventures. Additionally, the prosecution accused Bankman-Fried of trying to influence potential trial witnesses, leading to his arrest in August. On the other hand, Bankman-Fried’s attorney Mark Cohen argued that his client’s decisions may have been mistakes, but they were not criminal.
Sam Bankman-Fried (Via Sam Bankman-Fried/Twitter)
Cohen contended that Bankman-Fried believed Alameda Research, a cryptocurrency fund he founded, had sufficient assets to cover its liabilities, and that he was not aware of the scope of the crisis that would unfold.
Cohen also emphasized that Bankman-Fried testified honestly and truthfully, and that the jury should not convict him based on mistakes and failures of corporate controls. The jury will now review the evidence and decide whether Bankman-Fried is guilty of fraud. The case is a high-stakes test of the legal system’s ability to hold individuals accountable for their actions in the cryptocurrency world.
