Opening Statements Presented in Bankman-Fried Trial
The Facts
On Wednesday, opening statements were made in front of a jury of 10 women and two men in the criminal trial of former cryptocurrency entrepreneur Sam Bankman-Fried in a downtown Manhattan courtroom.
Bankman-Fried, who founded the now-bankrupt cryptocurrency exchange FTX, and sister hedge fund Alameda Research, is accused of diverting billions of FTX customers’ money to risky trades at Alameda and unlawful purchases.
The Spin
Narrative A
There was no fraud committed here. Anyone investing with FTX knew the risks involved and was informed about their money being shared with Alameda. All decisions made by Bankman-Fried were made above board, and had it not been for a run on FTX it would still be rolling along.
Narrative B
Whether the defense tries to paint Bankman-Fried as a good-faith actor or a naive math nerd, there are numerous technical reasons not to believe the story Bankman-Fried’s lawyers are telling. What it comes down to is that Bankman-Fried was living in a $30M penthouse while he was betting big with clients’ money, and now their money is gone. This doesn't look good for the former crypto czar.
