The Crypto Roundup: 05 October 2023 | CryptoCompare.com

The legal battle against Sam Bankman-Fried (SBF), co-founder and CEO of bankrupt crypto exchange FTX, officially began on 4 October 2023 in New York. The U.S. Department of Justice (DOJ) initiated the case by describing FTX as a “house of cards built on a lie.”

Assistant U.S. Attorney Nathan Rehn informed the jury that Bankman-Fried allegedly diverted customer funds to a less-publicized entity, Alameda Research, and used the money for personal luxuries and political donations. Furthermore, Rehn accused him of extracting more than $10 billion from FTX to pay off debts for Alameda Research, followed by an attempt to conceal this action through the creation of fraudulent financial statements.

On the other side, the defense, led by attorney Mark Cohen, argued that Bankman-Fried acted in good faith and was simply overwhelmed by the rapid expansion of both FTX and Alameda Research. They also introduced Caroline Ellison, a former FTX employee, as a key figure in the case, stating that she failed to implement necessary safeguards and has already pleaded guilty.

The prosecution’s first witness, Marc-Antoine Julliard, a London-based commodities trader, lost around $134,000 due to the collapse of FTX. Another witness, Adam Yedidia, testified under a grant of immunity, revealing that Alameda Research had used customer deposits to settle debts. The trial is ongoing, with both sides actively presenting their arguments.

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• Source: https://www.cryptocompare.com/email-updates/daily/2023/oct/5/