The second day of Sam Bankman-Fried’s criminal trial proceeded on Wednesday with opening statements from the defense and prosecution, painting different images of the defendant for a jury of 12 people.
Assistant United States Attorney Thane Rehn and defense attorney Mark Cohen delivered opening statements to a newly seated jury, outlining the events that led to the collapse of the crypto empire FTX, including the alleged role of its co-founder and former CEO, Bankman-Fried.
The opening arguments followed Judge Lewis Kaplan finalizing the selection of 12 jurors and six alternates.
The government was the first to deliver its opening argument, with AUSA Rehn alleging that Bankman-Fried not only used FTX customers’ funds to enrich himself but also sought to influence lawmakers and politicians through political donations, portraying himself as a trustworthy individual.
The prosecution also noted that at the time when he was “at the top of the world,” Bankman-Fried lied to FTX customers, employees, and the public.
“The hole was too big. So the defendant blamed a downturn in the crypto market. But he had committed fraud. That is what the evidence in this trial will show. You will hear from his inner circle. His girlfriend will tell you how they stole money together,” AUSA Rehn said, before adding, “He bought himself wealth, power, and influence. You will see it, and there is only one verdict: Sam Bankman-Fried is guilty.”
Cohen delivered his opening statement after the prosecution and placed blame on Caroline Ellison, the former CEO of the crypto hedge fund Alameda Research and a former lover of Bankman-Fried, as well as Binance CEO Changpeng Zhao (CZ) for several issues that led to the collapse of FTX.
“Sam didn’t defraud anyone. He acted in good faith. There was no theft. Sam believed that loans to Alameda were permitted. They were open and known within both companies. Sam did not steal from anyone,” Cohen told the jury.
The defense lawyer also portrayed Bankman-Fried as “a math nerd who didn’t drink or party” and not the “cartoon villain” that others projected him to be.
SBF’s Cohen: Sam didn’t defraud anyone. He acted in good faith. There was no theft. Sam believed that loans to Alameda were permitted. They were open and known within both companies. Sam did not steal from anyone. I want to give you a context
— Inner City Press (@innercitypress) October 4, 2023
“Crypto was not for everyone. It could go up or down. Companies could rise and fall very quickly. They’d have you think he’s a cartoon villain. Sam worked hard. He was a math nerd who didn’t drink or party. He worked for a traditional firm on Wall Street,” Cohen added.
Bankman-Fried’s criminal trial is expected to last for six weeks. The former FTX CEO has pleaded not guilty to all seven charges related to the fraud at his crypto empire. His second trial is set for March 2024.
