The U.S. District Court for the Southern District of New York has begun reviewing the Sam Bankman-Fried case, the ousted CEO of FTX, since last Monday. How did this trial evolve? The crypto community is closely following the outcome of the situation. Big plan !
No death penalty for former FTX CEO
Sam Bankman-Fried, the Bernard Madoff of cryptos, will not be sentenced to death, castigates Judge Lewis Kaplan. But he will indeed be judged for all the harm he has caused crypto investors to experience. 10 billion dollarsit is the totality of the assets of the creditors, individuals and institutions, lost through the fault of young Samuel.
According to CoinDesk, SBF would have experienced a hellish week in court since Monday. Indeed, DOJ prosecutors have continued to put forward evidence stating that the former CEO of FTX, unskilled in crypto business management, is indeed involved in a defrauding of customers and investors in the long term.
His lawyers, from the firm Cohen & Gresser, struggled to defend him against officials from the American Department of Justice.
In addition to the DOJ’s arguments, note that SBF must also endure attacks from all sides. First, let us note the existence of a host of documents relating to this affair already published on the web. Then there are the allegations from new FTX leaders led by John Ray III.
Furthermore, the “ apology tour » poorly designed by SBF just after the fall of FTX will not do it any good. Saying that not long before, he sought help from Binance’s CZ to avoid bankruptcy. And at the same time, he accused Changpeng Zhao of being the cause of his bad posture at the time.
Another important point to remember for this crypto trial: Sam Bankman-Fried’s highly paid lawyers have, for the most part, annoyed Judge Lewis Kaplan. Most of their misleading questions were rejected.
Testimony on this $65 billion story from Alameda Research
This was held on the 4the day, reports the crypto media CryptoNews. On occasion, Gary Wang, former CTO of FTX, called the founder of this cryptocurrency exchange a co-conspirator of fraud. He notably mentioned acts of electronic fraudsecurity fraud and raw materials fraud.
Wang did not forget to mention other names of people involved in this lame stunt: Caroline Ellison (ex-girlfriend of SBF) and Nishad Singh.
According to Wang’s explanation, there had been an “allow negative” bypass enabled on Alameda’s FTX account. In this way, Alameda Research was able to trade beyond its balance and ultimately withdraw $8 billion in client assets, both in fiat and crypto (BTC, FTT, etc.). Unfortunately, this happened without anyone knowing.
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