Crypto News- The second day of the high-profile Sam Bankman-Fried trial in New York has concluded, with the final selection of a twelve-member jury. Additionally, both sides presented their opening arguments, delivering a scathing indictment of the former cryptocurrency billionaire.
Sam Bankman-Fried’s Trial Day 2: Leveraging Celebrity and Political Connections for Image Enhancement
The atmosphere in the courtroom was noticeably calmer compared to the tumultuous jury selection process on the first day. The twelve jurors ultimately chosen included individuals from various walks of life, such as an investment banker, a postal service worker, a physician’s assistant, a train conductor, a nurse, and a teacher.
This diverse jury panel consisted of nine women and three men, with ages ranging from the early 30s to late 60s. Following the jury selection, both the prosecution and defense teams had the opportunity to present their 15-minute opening statements.
The prosecution alleged that Sam Bankman-Fried had carefully curated his public image by associating with celebrities and politicians while clandestinely engaging in fraudulent activities behind the scenes.
Much of the opening arguments revolved around a contentious “fiat@” accounting entry concerning FTX and Alameda. Prosecutors contended that Bankman-Fried misled customers into believing their funds were secure within FTX when, in reality, he was misappropriating their assets.
They claimed that an extensive sum of money had been routed to Bankman-Fried’s hedge fund, Alameda Research, through fabricated bank accounts and illicit access to cryptocurrency wallets.
Assistant US Attorney Nathan Rehn, as quoted in a transcript from Inner City Press, stated, “An exchange is supposed to make money by taking a fee, not by taking the customers’ money.” Prosecutors further alleged that Bankman-Fried used funds from the exchange for personal enrichment, political donations, and to cover Alameda’s debts.
Bankman-Fried was purportedly responsible for embedding the capability for Alameda to withdraw FTX funds directly into the platform’s code. During periods of business turmoil, he allegedly manipulated documents and made efforts to conceal his actions. Prosecutors continued to claim that this was facilitated by the deletion of messages and instructions to employees to automatically erase their communications on a monthly basis.
One of the trial’s initial witnesses, Adam Yedidia, supported these allegations. He testified under protection due to his role as an FTX developer, which potentially contributed to unlawful activities.
In his opening statement, defense attorney Mark Cohen addressed the jurors, emphasizing that his client had “a very different story” to tell. Cohen stated, “Sam didn’t defraud anyone, didn’t intend to defraud anyone.” Cohen maintained that Bankman-Fried had acted in good faith, making business decisions that were considered sound at the time.
He emphasized, “Being the CEO of a company that filed for bankruptcy is not a crime.” Cohen added, “It’s not a crime to seek celebrity endorsements, even from individuals like Tom Brady.”
Sam Bankman-Fried faces seven charges, including wire fraud and conspiracy. The trial is expected to span approximately six weeks, and he continues to assert his innocence against these allegations.
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