FTX Founder Sam Bankman-Fried appeared in Manhattan Federal Court in New York City on June 15, 2023. Prosecutors and defense counsel presented their closing arguments in his criminal trial. Prosecutors emphasized the mountain of evidence provided by key witnesses, while the defense accused the government of portraying Bankman-Fried as a “monster.”
Assistant U.S. Attorney Nicolas Roos, representing the prosecution, stated that approximately a year ago, thousands of people from around the world started withdrawing funds after depositing money with FTX. He claimed that $10 billion in customer money from FTX’s crypto exchange went missing, and was used for real estate, investments, loan repayments, and political donations. Roos contended that the main issue the jury must decide is whether Bankman-Fried knew that taking the money was wrong, asserting that the defendant schemed and lied to obtain and spend the money.
Bankman-Fried, a 31-year-old with a background in law and technology, pleaded not guilty to charges including wire fraud, securities fraud, and money laundering. The trial, which began in early October, revolves around the collapse of FTX and sister hedge fund Alameda Research.
The prosecution’s key witnesses, including Bankman-Fried’s ex-girlfriend Caroline Ellison and FTX co-founder Gary Wang, both pleaded guilty to multiple charges and cooperated with the government.
During the defense’s portion, lead counsel Mark Cohen allowed Bankman-Fried to present the majority of the case. Bankman-Fried denied defrauding anyone, taking customer money, and asserted that he tried to prevent FTX from failing with the help of his deputies.
Prosecutor Roos urged the jury to examine the evidence, alleging that Bankman-Fried lied to them. He highlighted instances when Bankman-Fried claimed not to recall certain details during questioning by the government and stated that the defendant built a pyramid of deceit that ultimately collapsed.
Roos argued that Bankman-Fried gave special privileges to Alameda, allowing it to use customer funds to cover losses. He claimed that Bankman-Fried knew it was wrong, which is why he kept it secretive. Roos also alleged that Bankman-Fried lied to the public about Alameda’s advantages and portrayed the company as being like everyone else, when in reality it was not.
The trial, presided over by Judge Lewis Kaplan, experienced delays due to technical issues and a juror being stuck in traffic. Roos walked the jury through key moments, emphasizing Bankman-Fried’s knowledge of FTX’s financial situation, his use of customer funds for personal investments and expenses, and his misleading statements to the public and investors.
In closing, the prosecution highlighted the charges facing Bankman-Fried and provided evidence for each. They referenced wire fraud against Alameda’s lenders, conspiracy to commit securities fraud on FTX investors, and the directing of losses to Alameda.
The trial is set to conclude in the coming days. If convicted, Bankman-Fried could face a potential life sentence.