During their opening statements to a freshly sworn-in jury in Manhattan federal court on Wednesday, attorneys provided early glimpses of their arguments, presenting two contrasting narratives to explain the downfall of Sam Bankman-Fried’s cryptocurrency empire.
Assistant US Attorney Thane Rehn portrayed Bankman-Fried as a nefarious and avaricious figure, whose insatiable desire for wealth and authority drove him to commit the theft of billions of dollars in customer funds.
Rehn reiterated the government’s allegations that Sam Bankman-Fried, known as SBF, treated his cryptocurrency exchange, FTX, as his personal financial playground. He was accused of diverting funds from customers to line his own pockets, fund luxurious real estate purchases in the Bahamas. And contribute millions to US political campaigns.
Bankman-Fried, aged 31, faces multiple charges of fraud and conspiracy following the collapse of his cryptocurrency trading platform, FTX, last year.
Rehn emphasized the gravity of the accusations, pointing at Bankman-Fried just a few feet away. And stated, “This man stole billions of dollars from thousands of people.” He repeatedly emphasized a central argument: that Bankman-Fried not only stole funds but also enlisted others in his theft, lied about his actions, and continued to deceive as he attempted to cover up his alleged crimes.
While Rehn delivered his statements, Sam Bankman-Fried, dressed in a suit. And tie and accompanied by his legal team, remained composed. And fixating his attention on a laptop and showing no apparent reaction to the prosecutor’s allegations. However, when his own attorney, Mark Cohen, took the floor to present his case, Bankman-Fried’s demeanor changed. He appeared more engaged and directed his focus toward the jury box.
On Wednesday afternoon, prosecutors called their initial witness. And providing jurors with insight into the perspective of a typical retail investor who sought to explore cryptocurrency trading. Marc-Antoine Julliard, a French cocoa broker residing in London. And shared his testimony about entering the cryptocurrency arena as a latecomer. So with the intention of investing a substantial portion of his savings in the crypto market. He expressed his attraction to FTX, in part, due to the notable venture capital firms that had supported the company.
Julliard testified that in the spring of 2022, he invested approximately 110,000 British pounds. So which equates to roughly $133,000 today, into his FTX account. As concerns began to circulate among investors regarding FTX’s financial stability in early November, Julliard indicated that he placed his trust in Sam Bankman-Fried’s public reassurances on Twitter. Bankman-Fried had used the platform to assert that both the company and customers’ assets were in good standing. Manhattan federal court
As his anxiety mounted, Julliard attempted to withdraw funds from his FTX account. And which consisted of approximately $100,000 in fiat currency and bitcoin at that time. Regrettably, none of his withdrawal requests were processed, and he has not been able to recover any of those funds.