Sam Bankman-Fried (SBF), the Founder of FTX, is racing against time to convince a Manhattan jury of his innocence in a high-stakes fraud trial. SBF faces seven criminal counts, which include wire fraud, securities fraud, and money laundering. If the jury finds him guilty, he could potentially spend the rest of his life behind bars

SBF faces seven criminal counts, which include wire fraud, securities fraud, and money laundering. If the jury finds him guilty, he could potentially spend the rest of his life behind bars.

According to a report by CNBC, throughout the trial, SBF's defense has struggled to challenge the prosecution's key witnesses. Despite his defense attorney's attempts and calling only three witnesses, the bulk of the case rests on SBF's ability to persuade the jury that he did not commit fraud or misuse customers' funds.

SBF's Defense Faces Challenges Countering the Prosecutors

The 31-year-old former billionaire, whose crypto empire crumbled over a few days last November, has repeatedly claimed that he made mistakes in overseeing his businesses. However, he fell short when explaining what happened to billions of dollars in customers' money. The prosecution's witnesses have provided more precise answers, indicating that significant sums were misappropriated.

The trial also revealed a lack of clarity regarding Alameda Research's borrowing from FTX. SBF asserted that, as long as Alameda's net asset value was positive and borrowing was reasonable, he was unaware of the extent of borrowing. Prosecutors introduced evidence, including encrypted messages and internal documents, suggesting that SBF significantly spent FTX customer funds.

SBF attempted to justify certain expenditure, such as naming rights to a basketball arena and luxurious properties in the Bahamas, by asserting they were funded from company profits and venture investments, not customers' funds.

However, in a strategic shift, SBF shifted the blame towards his former top lieutenants who testified against him. He disclosed his efforts to ensure sufficient hedging strategies at Alameda Research and revealed conversations with Caroline Ellison, who was cooperating with the government.

The Jury's Verdict Looms

As the trial nears its conclusion, it remains to be seen whether SBF's testimony and shifting blame will convince the jury of his innocence. The fate of the former crypto billionaire now rests in the hands of 12 jurors who have observed the trial's twists and turns, eagerly anticipating the final verdict.

In a separate report by Reuters, SBF has expressed deep "regret" for not looking into the $8 billion debt that Alameda Research borrowed from the cryptocurrency exchange before its sudden collapse last November. He revealed that he only discovered in October 2022 that Alameda's borrowings were not adequately documented on its main FTX account.

SBF's statements in court aimed to persuade the jury to acquit him of the two counts of fraud and five counts of conspiracy he currently faces. Prosecutors alleged that he illicitly funneled billions of dollars of customer funds to support Alameda, invested recklessly in speculative ventures, and made substantial political donations amounting to over $100 million.