– On Wednesday, the trial of Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, started with federal prosecutors accusing him of deliberately deceiving the world.
– Bankman-Fried’s defense argued that he acted in good faith and had no intention to defraud anyone.
– The trial has drawn attention not only to the fall of FTX but also to reckless behavior in the cryptocurrency industry as a whole.
– Bankman-Fried, once a billionaire and considered a leader in the cryptocurrency industry, saw his company collapse and his fortune disappear. He now faces charges of using customers’ funds for personal projects.
– The trial is seen as a significant reckoning for a business executive since the conviction of Elizabeth Holmes, the founder of Theranos.
– Bankman-Fried’s top executives, including his on-and-off girlfriend, have pleaded guilty to fraud and agreed to cooperate against him.
– Prosecutors have presented evidence, including digital records and audio recordings, that allegedly show Bankman-Fried’s involvement in the scheme.
– The defense argues that Bankman-Fried acted in his customers’ interests and questions the credibility of the cooperating witnesses.
– The trial began with opening statements and the testimony of witnesses who lost money in FTX’s collapse.