FTX founder Sam Bankman-Fried's trial moves to closing arguments

The trial of FTX founder Sam Bankman-Fried (SBF) is nearing its conclusion

The criminal trial of FTX founder Sam Bankman-Fried, involving seven fraud-related charges, is moving into its final phase. Closing arguments from both the defense and prosecution will take place on November 1, following the denial of a request for acquittal by the presiding judge. The trial, which has spanned 15 days, has seen allegations that Bankman-Fried siphoned $8 billion from FTX customers' deposits to fund risky trades at his hedge fund, Alameda Research. Bankman-Fried has pleaded not guilty to all charges.

Prosecution presents evidence against Bankman-Fried

In the course of the trial, prosecutor Danielle Sassoon presented documents, tweets, and corporate messages as evidence that Bankman-Fried used FTX customers' deposits for personal gain. The prosecution argues that these actions constitute fraud. Bankman-Fried, however, maintains that the use of customers' deposits was a necessary risk management procedure for Alameda Research, and in line with company policies.

Key FTX personnel cooperate with the government

Several key individuals within FTX, including Alameda CEO Caroline Ellison, FTX CTO Gary Wang, and former FTX head of engineering Nishad Singh, have pleaded guilty to charges related to the collapse of the exchange last year. They are currently cooperating with the U.S. government and providing testimonies against Bankman-Fried. If convicted, Bankman-Fried could face a maximum prison sentence of 115 years.

Second trial scheduled for 2024

In addition to the ongoing trial, Bankman-Fried is expected to face five more charges in a second trial scheduled to begin in March 2024. These charges relate to an alleged $150 million bribe of a Chinese government official. Bankman-Fried has pleaded not guilty to these charges as well.