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Sam Bankman-Fried's Trial: Prosecutors Expose His Own Words
2 years ago•Source: The New York Times
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3.995 min•2 years ago
Sam Bankman-Fried's Testimony: Admitting Mistakes, Denying Fraud, and Concerns over Management
Sam Bankman-Fried, the founder of FTX, testified in his own defense at his fraud trial, admitting to making "mistakes" but denying allegations of defrauding anyone or stealing billions of dollars from customers. Bankman-Fried blamed the collapse of the cryptocurrency exchange on oversight as an entrepreneur and sought to shift some blame onto Caroline Ellison, the former CEO of his Alameda Research hedge fund. He pleaded not guilty to charges of fraud and conspiracy. Bankman-Fried claimed that funds used for sponsorships and real estate came from the company's revenue or capital, not customer funds. He also distanced himself from the actions of former colleagues who testified against him. Prosecutors will cross-examine Bankman-Fried next week.
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The New York Times•2 years ago
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"Caroline Ellison and Sam Bankman-Fried's Decades of Deception Unveiled"
Caroline Ellison, a former top adviser to cryptocurrency mogul Sam Bankman-Fried, testified in court that she had lied and circulated "dishonest" financial documents at his request, misleading lenders and the public about his businesses. Ellison, who dated Bankman-Fried on and off for years, pleaded guilty to fraud and conspiracy and is cooperating with prosecutors. Bankman-Fried is on trial for orchestrating a scheme to defraud lenders and steal billions of dollars from FTX customers. The trial has become a focal point for examining high-risk practices in the crypto industry.
"FTX Co-founder and Sam Bankman-Fried Face Fraud Trial as AVAX Climbs"
Gary Wang, co-founder of FTX, testified in court that he and Sam Bankman-Fried committed wire fraud, securities fraud, and commodities fraud related to their oversight of the now-bankrupt crypto exchange. Wang's testimony supports the government's case against Bankman-Fried, who is accused of orchestrating a scheme to steal from customers and defraud investors. The trial focuses on FTX's close financial ties to sister company Alameda Research, with prosecutors alleging that FTX deceived customers about the use of their funds. Defense attorneys have yet to cross-examine Wang. Another former FTX employee also testified about a concerning $8 billion liability hanging over Alameda's balance sheet.
Sam Bankman-Fried's Trial Unveils Demands, Defense, and Climbing AVAX
Gary Wang, a former colleague and roommate of Sam Bankman-Fried, testified at Bankman-Fried's fraud trial that Bankman-Fried instructed him to give their co-owned hedge fund, Alameda Research, special trading privileges on the FTX cryptocurrency exchange. These privileges included a $65 billion line of credit, significantly larger than what other users could borrow. Alameda had withdrawn $8 billion from FTX, leading to the exchange's bankruptcy. Wang, the former CTO of FTX, stated that Bankman-Fried directed him to implement these changes. Bankman-Fried is facing charges of stealing billions of dollars in FTX customer deposits to cover losses at Alameda, buy real estate, and donate to political candidates.
FTX Executive Ryan Salame to Plead Guilty in Fraud Case
Ryan Salame, a former executive at cryptocurrency exchange FTX, is expected to plead guilty to criminal charges related to the fraud case against FTX founder Sam Bankman-Fried. Salame, who ran FTX's subsidiary in the Bahamas and was a donor to Republican politicians, will become the fourth executive in Bankman-Fried's inner circle to admit to criminal conduct since FTX collapsed in November. This development increases the legal pressure on Bankman-Fried, who is set to stand trial on fraud charges starting October 3rd.