The closely watched trial of FTX cryptocurrency exchange founder Sam Bankman-Fried is reaching its climax, with U.S. prosecutors and defence attorneys set to present closing arguments on Wednesday. The trial, which has gripped financial markets, centres around allegations that Bankman-Fried orchestrated one of the largest financial frauds in U.S. history, siphoning off $8 billion from FTX customers.
After facing rigorous cross-examination, Bankman-Fried’s defence team rested their case on Tuesday. Throughout the trial, the prosecution presented a compelling narrative, with testimonies from three former associates who claimed Bankman-Fried directed them to commit financial crimes, including diverting FTX customer deposits for personal gain.
Prosecutors contend that Bankman-Fried used the misappropriated funds to settle debts, invest speculatively, and contribute to political campaigns. They allege that he enticed customers to FTX with false assurances of fund security and misled them about the exchange’s financial health, causing substantial losses.
During his testimony, Bankman-Fried defended himself as a hands-off CEO, asserting that operational details were managed by his subordinates. However, prosecutors challenged his claims, highlighting inconsistencies in his statements and pointing to evidence suggesting his active involvement in decision-making processes.
Danielle Sassoon, one of the prosecutors, relentlessly questioned Bankman-Fried about his previous statements regarding customer funds’ safety and Alameda’s independence from FTX. The prosecution’s case rests on proving that Bankman-Fried knowingly deceived customers and investors.
Bankman-Fried’s credibility was repeatedly called into question during the cross-examination. U.S. District Judge Lewis Kaplan admonished him for evasive responses and lack of clarity, creating a tense atmosphere in the courtroom.
The trial, held in Manhattan federal court, has spanned 15 days of intense scrutiny, culminating in the impending closing arguments. Jurors, who have diligently listened to the testimonies, are expected to receive the case for deliberation on Thursday. If convicted on all counts, Bankman-Fried could face substantial prison time, marking a significant moment in financial jurisprudence.
