{"id":593244,"date":"2023-10-05T01:17:19","date_gmt":"2023-10-04T22:17:19","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/latest-update-former-ftx-ceo-sam-bankman-fried-trial-day-2\/"},"modified":"2023-10-05T01:17:19","modified_gmt":"2023-10-04T22:17:19","slug":"latest-update-former-ftx-ceo-sam-bankman-fried-trial-day-2","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/latest-update-former-ftx-ceo-sam-bankman-fried-trial-day-2\/","title":{"rendered":"# Latest update \u2014 Former FTX CEO Sam Bankman-Fried trial [Day 2]"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a352e4b73245\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a352e4b73245\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/latest-update-former-ftx-ceo-sam-bankman-fried-trial-day-2\/#Oct_4_DOJ_and_Bankman-Frieds_defense_state_their_arguments\" >Oct. 4: DOJ and Bankman-Fried&#8217;s defense state their arguments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/latest-update-former-ftx-ceo-sam-bankman-fried-trial-day-2\/#Oct_3_SBF_trial_begins\" >Oct. 3: SBF trial begins<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/latest-update-former-ftx-ceo-sam-bankman-fried-trial-day-2\/#December_SBF_arrested\" >December: SBF arrested<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/latest-update-former-ftx-ceo-sam-bankman-fried-trial-day-2\/#November_FTX_collapses\" >November: FTX collapses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/latest-update-former-ftx-ceo-sam-bankman-fried-trial-day-2\/#SBF_and_FTX_before_the_fall\" >SBF and FTX before the fall<\/a><\/li><\/ul><\/nav><\/div>\n<p itemprop=\"description\" class=\"post__lead\" data-v-3d3be88a> The former FTX CEO faces seven counts of conspiracy and fraud. A New York court will decide his fate. <\/p>\n<p><\/p>\n<div class=\"post-content\" data-v-3d3be88a>Cointelegraph reporters are on the ground in New York for the trial of former FTX CEO Sam \u201cSBF\u201d Bankman-Fried. As the saga unfolds, check below for the latest updates.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Oct_4_DOJ_and_Bankman-Frieds_defense_state_their_arguments\"><\/span>Oct. 4: DOJ and Bankman-Fried&#8217;s defense state their arguments<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The first hours of Sam Bankman-Fried trial have offered a glimpse of the arguments the Department of Justice (DOJ) and his defense will bring to court in the coming weeks.<\/p>\n<p>After a jury selection in the morning, both parties gave opening statements to the 12-person jury present in the court.<\/p>\n<p>The DOJ took a tough stance against Bankman-Fried in its first statement, portraying the FTX founder as someone who deliberately lied to investors to enrich himself and expand his crypto empire.<\/p>\n<p>According to the DOJ, Bankman-Fried lied to FTX customers and investors, using Alameda as a key partner to \u201csteal customers&#8217; funds,\u201d a phrase that was frequently used during the opening statements.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-10\/1004794e-c2f7-4865-9c1b-39a97e4c06f2.jpg\"><figcaption style=\"text-align: center;\"><em>A sign outside Sam Bankman-Fried&#8217;s trial location in New York. Source: Ana Paula Pereira\/Cointelegraph<\/em><\/figcaption><\/figure>\n<p>As per the trial preview, the DOJ will focus its arguments on allegations that Bankman-Fried misled customers, investors, and lenders regarding the safety of their funds while using Alameda to steal their money and influence politicians in Washington.<\/p>\n<p>The defense, meanwhile, brought arguments about Bankman-Fried being a young entrepreneur who made business decisions that \u201cdidn\u2019t work out.\u201d The defense denied the existence of secret transactions between Alameda and FTX, or a backdoor used to steal customer funds. According to the previous arguments presented, all transactions were legitimate or made in good faith by Bankman-Fried during the crypto market downturn and the subsequent collapse of FTX in November 2022.<\/p>\n<p>The defense also highlighted the role of Binance in the bank run that led to FTX\u2019s collapse. Testimonies will continue throughout the day.<\/p>\n<p>According to the defense, Bankman-Fried assumed FTX was allowed to loan funds to Alameda as part of a business relationship with the market maker, and there was no secret door for transactions between the companies.<\/p>\n<p>Prosecutors also noted that Caroline Ellison, Gary Wang, and Nishad Singh will offer the jury insider details about Bankman-Fried\u2019s role in FTX\u2019s operations and alleged crimes. However, the defense pointed out that as part of the cooperation agreement with the government, they were supposed to give testimony against Bankman-Fried, raising doubts about their credibility.<\/p>\n<p>The defense also downplayed the accusations against the nature of the relationship between FTX and Alameda, arguing that FTX margin traders were aware of the risks associated with transactions.<\/p>\n<p>\u201cThere was no theft,\u201d the defense claimed. \u201cIt&#8217;s not a crime to be the CEO of a company that files for bankruptcy.\u201d<\/p>\n<p>In the second half of the first day of the trial, the jury heard from two witnesses: Mark Julliard, a French trader and former client of FTX, and Adam Yedidia, a friend of Sam Bankman-Fried and former employee at Alameda Research and FTX.<\/p>\n<p>In his testimony, Julliard said he had four Bitcoin held at FTX at the time of the exchange\u2019s collapse, worth nearly $100,000. He admitted that FTX and Bankman-Fried\u2019s marketing efforts, along with notable venture capital companies backing FTX, gave him the confidence to use the exchange for crypto trading. He assumed that VC firms had run due diligence on FTX and its leadership.<\/p>\n<p>During the questioning, prosecutors emphasized that the trader used FTX exclusively for spot trading and that he was not aware that the exchange was using client funds for crypto trading with Alameda Research.<\/p>\n<p>Questions for Yedidia were focused on his educational background at MIT, where he first met Bankman-Fried, and his two professional experiences with the FTX founder. Yedidia worked at Alameda for a brief period in 2017 as a trader and then came back to work for FTX in 2021 as a developer. He was one of ten people living in the Bahamas on FTX&#8217;s $30 million real estate.<\/p>\n<p>In Yedidia&#8217;s testimony, prosecutors used former FTX ads as evidence that the company was always positioning itself as a safe, trusted, and easy way to invest in cryptocurrency, including marketing campaigns with NFL player Tom Brady and co<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>n Larry David. The trial will resume Oct. 5.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Oct_3_SBF_trial_begins\"><\/span>Oct. 3: SBF trial begins<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-10\/2a41313e-7417-40e7-99d5-fb2eee7cb785.jpg\"><figcaption style=\"text-align: center;\"><em>Bankman-Fried\u2019s trial will take place in a Manhattan federal court. Source: Ana Paula Pereira\/Cointelegraph<\/em><\/figcaption><\/figure>\n<p>The trial of Sam Bankman-Fried began on Oct. 3 with jury selection. Bankman-Fried is charged with seven counts of conspiracy and fraud in connection with the collapse of FTX, the cryptocurrency exchange he co-founded. He has pleaded not guilty to all charges. The case is being heard by Judge Lewis Kaplan, who has presided over a long list of other high-profile cases, including ones involving detainees at Guantanamo Bay, the Gambino crime family, Prince Andrew and Donald Trump.<\/p>\n<p>Bankman-Fried was ordered to be jailed on Aug. 11 after Kaplan found that his sharing of former Alameda Research CEO Caroline Ellison\u2019s personal papers amounted to witness intimidation. Alameda Research was a trading house also founded by Bankman-Fried. Previously, he had\u00a0been under house arrest in his parents\u2019 home in Stanford, California on a $250-million bond.<\/p>\n<p><iframe loading=\"lazy\" title=\"Live: Sam Bankman-Fried goes on trial for fraud in New York\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/gB1zBrqHPLw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<h3><span class=\"ez-toc-section\" id=\"December_SBF_arrested\"><\/span>December: SBF arrested<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Bankman-Fried was arrested in the United States on his arrival from the Bahamas on Dec. 21, 2022. He had\u00a0been arrested in the Bahamas\u00a0on Dec. 12 after the U.S. government formally notified the country of charges the U.S. was filing against him. He declared his intention to fight extradition from the Caribbean nation but changed his mind after a week in Bahaman jail and consented to extradition.<\/p>\n<p>Meanwhile, FTX co-founder Gary Wang and Alameda Research CEO (and reportedly sometime SBF girlfriend) Ellison agreed to plead guilty in the burgeoning case.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"November_FTX_collapses\"><\/span>November: FTX collapses<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Bankman-Fried\u2019s troubles began when reports emerged on Nov. 2 that Alameda Research had a large holding of FTX Token (FTT), FTX\u2019s utility token. That revelation led to questions about the relationship between the two entities. On Nov. 6, Changpeng Zhao, CEO of rival exchange Binance, announced that his exchange would liquidate its FTT holdings, which were estimated to be worth $2.1 billion.\u00a0Zhao turned down an offer tweeted by Ellison to buy Binance\u2019s FTT.<\/p>\n<p>A run began on FTX. Bankman-Fried gave reassurances on Twitter (now X) that the exchange\u2019s \u201cassets are fine\u201d and accused \u201ca competitor\u201d of spreading rumors. By Nov. 8, the price of FTT had\u00a0fallen from $22 to $15.40.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">It\u2019s only been one week since SBF\u2019s notorious \u201cFTX is fine. Assets are fine.\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/zKoILqquHF\">pic.twitter.com\/zKoILqquHF<\/a><\/p>\n<p>\u2014 Robert Smith (@BondHack) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/BondHack\/status\/1592250606747799552?ref_src=twsrc%5Etfw\">November 14, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Also on Nov. 8, Bankman-Fried announced on Twitter that he had\u00a0come to an agreement with Zhao \u201con a strategic transaction.\u201d He wrote, \u201cOur teams are working on clearing out the withdrawal backlog as is. This will clear out liquidity crunches; all assets will be covered 1:1.\u201d<\/p>\n<p>On Nov. 9, Zhao announced that Binance would not pursue the acquisition of FTX\u00a0after due diligence and more reports of mishandled funds.\u00a0The price of Bitcoin (BTC) plummeted to $15,600.\u00a0The FTX and Alameda Research websites went dark for a few hours. When the FTX website came back, it bore a warning against making deposits and was unable to process withdrawals.<\/p>\n<p>On Nov. 10, Bankman-Fried posted a 22-part Twitter thread that began with \u201cI\u2019m sorry.\u201d It was the first of a long string of public statements he made about the exchange\u2019s fall. The following day, the entire staff of Alameda Research quit, and FTX, FTX US and Alameda Research filed for bankruptcy in the United States.\u00a0Bankman-Fried resigned as FTX CEO and was replaced by John J. Ray III, who was best known for his role in the Enron bankruptcy.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"SBF_and_FTX_before_the_fall\"><\/span>SBF and FTX before the fall<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>At the beginning of 2022, FTX had a $32-billion valuation and\u00a0was thought to be in enviable financial condition. Bankman-Fried was seen as a respected business leader by much of the crypto community and the world at large. He was photographed with political leaders and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.agriculture.senate.gov\/imo\/media\/doc\/Testimony_Bankman-Fried_0209202211.pdf\">spoke<\/a> at congressional\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/docs.house.gov\/meetings\/AG\/AG00\/20220512\/114729\/HHRG-117-AG00-Wstate-Bankman-FriedS-20220512.pdf\">hearings<\/a>.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Maxine Waters is chairing the investigation into FTX <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/oFMctH4rRh\">https:\/\/t.co\/oFMctH4rRh<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/Ox6O5w4nOl\">pic.twitter.com\/Ox6O5w4nOl<\/a><\/p>\n<p>\u2014 Jordan Schachtel @ dossier.today (@JordanSchachtel) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/JordanSchachtel\/status\/1593289220755525632?ref_src=twsrc%5Etfw\">November 17, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>He had gained a reputation as a philanthropist, pursuing a philosophy popular among academics known as \u201ceffective altruism.\u201d Part of his implementation of that philosophy was political activism in the form of financial support for candidates.<\/p>\n<p>As the crypto winter set in, Bankman-Fried spoke of FTX and Alameda Research\u2019s \u201cresponsibility to seriously consider stepping in, even if it is at a loss to ourselves, to stem contagion.\u201d The companies made a bid for Voyager Digital that was rebuffed.<\/p>\n<p>FTX\u00a0made a deal with Visa to introduce its own debit card in 40 countries.<\/p>\n<p>Bankman-Fried, Ellison and other alumni of Jane Street Capital founded Alameda Research in 2017. Bankman-Fried went on to found FTX with Wang in 2019. Zhao was an early investor in the exchange.<\/p>\n<p class=\"post-content__disclaimer\">This is a developing story, and further information will be added as it becomes available.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/sam-bankman-fried-ftx-trial-updates\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The former FTX CEO faces seven counts of conspiracy and fraud. A New York court will decide his fate. Cointelegraph reporters are on the ground in New York for the trial of former FTX CEO Sam \u201cSBF\u201d Bankman-Fried. As the saga unfolds, check below for the latest updates. Oct. 4: DOJ and Bankman-Fried&#8217;s defense state&#8230;<\/p>\n","protected":false},"author":1,"featured_media":593245,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMTAvOGM5ODdiYzAtNjI5Yi00YmRmLWJkYzEtYTM4ZTY3OWRmMmY5LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74860,135234,127241,89897,71006,70934,75655],"class_list":["post-593244","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cryptocurrency-exchange","tag-ftx","tag-ftx-token","tag-sam-bankman-fried","tag-fraud","tag-regulation","tag-trial"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/593244","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=593244"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/593244\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/593245"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=593244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=593244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=593244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}