Tomorrow will see the start of Sam Bankman-Fried’s trial, the former founder of FTX, in what may end up being one of the biggest trials in the cryptocurrency industry. The trial comes after Bankman-Fried’s detention in the Bahamas about 10 months ago, and if the allegations are upheld, he may spend a significant amount of time behind bars.
Over the following six weeks, hundreds of pages of evidence will be presented by US prosecutors in an effort to prove that Bankman-Fried purposefully misled clients and business partners. His former coworkers, close friends, and housemates, Caroline Ellison, Nishad Singh, and Gary Wang, could provide significant personal memories and perspectives in their testimony, which could yield important insights.
The events that led to the ex-couple’s breakup, as described by Ellison in a diary entry from February 2022, will also be thoroughly scrutinised. Additionally, the prosecution intends to summon FTX investors and clients, including those from countries other than the United States, throughout the proceedings.
Notably, there have been questions raised about the movement of about 15,000 Ether, or roughly $26 million, that began over the weekend from a wallet where some of the $600 million in cryptocurrency reported lost during an FTX hacking event in November was housed.
Last but not least, in a decision that favoured the DOJ, Judge Lewis Kaplan authorised a directive barring Bankman-Fried from bringing up his attorneys’ opinions regarding FTX‘s operations during his opening statement. However, if the defence later chooses to assert the “advice-of-counsel” defence, they must provide the court and DOJ the proper notice.