Sam Bankman-Fried dedicated “fraud on an enormous scale” by stealing “billions of {dollars} from tens of millions of consumers” of his FTX cryptocurrency change, prosecutors alleged as opening arguments started within the former crypto tycoon’s hotly anticipated trial.
“One yr in the past it regarded favored ‘SBF’ was on the highest of the world,” assistant US lawyer Thane Rehn advised jurors on Wednesday in Manhattan federal court docket. “He had wealth, he had energy, he had affect, however all of it . . . was constructed on a lie.”
Bankman-Fried used the proceeds to purchase lavish homes and court docket celebrities equivalent to Tom Brady, in addition to politicians together with former Democratic president Invoice Clinton, Rhen mentioned.
Attorneys for Bankman-Fried are anticipated to reply with their opening arguments in a while Wednesday.
The prosecutors’ statements kicked off what is anticipated to be a six-week trial to determine the destiny of the 31-year-old former billionaire, who was till final yr one of many main figures within the freewheeling world of cryptocurrency buying and selling.
He’s accused of getting defrauded buyers, lenders and clients as he absconded with billions of {dollars} in deposits entrusted to his FTX cryptocurrency change.
Bankman-Fried, who sat in court docket carrying a gray go well with, has formally denied the costs and maintained his innocence in quite a few media interviews given earlier than he was jailed in August for allegedly trying to intimidate witnesses. Prosecutors confirmed on Tuesday that that they had not at any time provided Bankman-Fried a plea deal.
His defence staff, led by lawyer Mark Cohen, is anticipated to deflect blame on to Bankman-Fried’s legal professionals and advisers, and declare he acted in good religion inside the advanced and fast-changing world of crypto regulation.
The prosecutors’ case rests closely on the testimony of three central witnesses, former lieutenants to Bankman-Fried who agreed to co-operate with the federal government and are anticipated to take the stand within the coming days.
A number of former FTX clients and buyers are additionally anticipated to testify, probably together with a Ukrainian depositor within the change who had believed the funds have been in a protected haven in the course of the Russia’s full-scale invasion of the nation.
The roster of potential witnesses or vital figures within the trial, learn out by the federal government in court docket, consists of all of FTX’s high in-house legal professionals, in addition to different central workers concerned in lobbying for the change in Washington and know-how growth.
The enterprise capital buyers who invested $1.8bn into FTX earlier than its collapse can even function within the trial, together with Sequoia Capital and companion Alfred Lin. SkyBridge Capital founder Anthony Scaramucci — who was briefly the spokesperson for the administration of Donald Trump earlier than changing into a crypto evangelist — was additionally talked about.
Arguments obtained below method after a jury of 12 members and six alternates was chosen from a bunch of just about 50. The choose quizzed would-be jurors on their experiences with cryptocurrencies and prior data of the case. The chosen jury includes three males and 9 girls, together with a social employee, a highschool librarian and a retired corrections officer.
Choose Lewis Kaplan requested the jurors if that they had watched a Sunday interview with creator Michael Lewis, who had shadowed Bankman-Fried for months earlier than and through his fall from grace for his newest e book, which was printed on Tuesday. Lewis, who mentioned FTX had “an awesome actual enterprise” advised CBS Information the e book was supposed to be a “sort of letter to the jury”.