Sam Bankman-Fried's Trial Commences with 12-Judge Jury Selection

Wednesday, 04/10/2023 | 18:47 GMT by Jared Kirui

Prosecutors allege theft, while the defense claims misjudgment, not fraud.

Bankman-Fried is accused of stealing customers' funds to build his empire.

Judge Lewis Kaplan, the presiding judge in Sam Bankman-Fried’s case, has unveiled a panel of 12 jurors and six alternates who will be sworn in, marking the beginning of a trial that has garnered significant attention.

The jury, made up of diverse individuals, including a physician's assistant, a librarian, and a nurse, has been chosen to decide the fate of Bankman-Fried, Coindesk initially reported. Their deliberations will determine whether he is guilty of fraud and conspiracy charges in the case before the US District Court for the Southern District of New York.

The US Prosecutors have filed multiple charges of fraud and conspiracy against Bankman-Fried following the collapse of his crypto-trading platform , FTX. Prosecutors allege that the 31-year-old entrepreneur misappropriated approximately $8 billion in customer funds. These funds were purportedly used to cover high-risk bets made by his crypto hedge fund, acquire luxury real estate in the Bahamas, and make substantial contributions to US political campaigns.

Sam Bankman-Fried's Legal Showdown

In an opening statement, Prosecutor Thane Rehn described Bankman-Fried as a man who seemed to be successful but, in reality, was orchestrating massive fraud. According to Rehn, Bankman-Fried used his position at FTX to carry out financial deception by diverting funds from unsuspecting customers to build his empire, Reuters reported. This trial, now underway, is set to determine the truth of these claims.

In response, Bankman-Fried's legal team is expected to argue that while their client may have mismanaged risk, he did not engage in outright theft. They are likely to point fingers at cooperating witnesses, suggesting that these individuals are implicating Bankman-Fried to secure lenient sentences for their involvement.

Key Witnesses and Family Ties

As the trial progresses, prosecutors plan to summon three key figures from Bankman-Fried's inner circle: Caroline Ellison, the former CEO of Alameda Research, and former FTX executives Nishad Singh and Gary Wang. All three have already pleaded guilty and agreed to cooperate with the prosecution. Their testimony could reveal the details that led to the collapse of FTX.

Interestingly, Bankman-Fried's parents, Joseph Bankman and Barbara Fried, both Stanford Law School professors, appeared in the courtroom. While their names were mentioned as possible witnesses, it remains to be seen if they will testify. Bankman-Fried himself, once known for his casual attire, appeared in court in a more formal fashion.