Opening arguments begin in Sam Bankman-Fried trial

cointelegraph.com:

Prosecutors and defense attorneys in the criminal case of former FTX CEO Sam Bankman-Fried, also known as SBF, painted a very different picture for the jury to consider during the trial.

In a New York courtroom on Oct. 4, Assistant United States Attorney Thane Rehn and SBF attorney Mark Cohen delivered opening arguments to a jury of 12 people on the events leading up to the collapse of crypto exchange FTX as well as Bankman-Fried’s alleged role. The remarks followed Judge Lewis Kaplan finalizing a selection of 12 members of the jury and 6 alternates after more than a day of questioning.

According to an X (formerly Twitter) thread from Inner City Press at the event, Rehn claimed in court that SBF used FTX customer funds to enrich himself as well as convince lawmakers — through campaign donations and testimony — that he was trustworthy. The Assistant U.S. Attorney reportedly argued that Bankman-Fried repeatedly lied to users, employees, and the general public regarding “the hole” FTX found itself in during November 2022 when financial information on the exchange was released.

“The hole was too big,” said Rehn. “So 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.”

Cohen, who delivered his opening statement after Rehn, reportedly blamed some of the issues leading to FTX’s downfall on SBF’s former girlfriend and former Alameda Research CEO Caroline Ellison as well as Binance CEO Changpeng Zhao, or CZ. He claimed Ellison had failed to act to hedge some of Alameda’s investments despite Bankman-Fried’s urging to do so, and CZ’s social media posts had directly