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<div class="insidebitcoins">
 Prosecutors accused FTX founder Sam Bankman-Fried of constructing a fraudulent empire “built on a lie” while his legal team blamed the fall of the bankrupt crypto exchange on his former romantic partner, and colleague, Caroline Ellison.
 Those were the highlights from opening statements on Oct. 4 as Bankman-Fried’s trial on fraud and conspiracy got underway in earnest.
 Assistant U.S. Attorney Nathan Rehn told the jury that just a year ago, it seemed like Bankman-Fried was living the high life, and was seen with people including former president Bill Clinton and former American footballer Tom Brady.&nbsp;
 “But it was built on lies,” he said.&nbsp; “He was committing a massive fraud, taking billions of dollars from thousands of victims.&nbsp; He had started FTX. He told customers it was safe. But he was taking it and spending it.”
 The prosecution said Bankman-Fried misused customer funds, and funneled them into various investments and personal luxuries.
 “He spent it on himself, and on political contributions,” Rehn said. “The customers were left with billions in losses. We are here today to hold him accountable.”
 <h2 class="p3" id="span-class-s1-prosecution-accuses-bankman-fried-of-deceptive-practices-span">Prosecution Accuses Bankman-Fried of Deceptive Practices</h2>
 The prosecution alleges that Bankman-Fried deceived FTX users by providing misleading information in the app’s terms of service. Users were informed that their funds would be kept securely. Instead, they were redirected to a smaller and undisclosed company called Alameda Research, which Rehn claims served as a personal piggy bank for Bankman-Fried, his associates, and family members.
 The government said that Bankman-Fried redirected customer funds for the purpose of making political contributions, with the aim of gaining favour with influential individuals in the government. Rehn contended that Bankman-Fried’s behaviour enabled him to accumulate wealth, authority, and influence, at the expense of his unsuspecting customers.
 “He paid political donations in DC…..he took billions of dollars, the customers had no way to know,” Rehn said.
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 US v SBF, CASE FOR THE PROSECUTION: Sam Stole Billions US Says, to Hang With Brady &amp; Clinton, Used Ellison – Inner City Press story here: https://t.co/3GsZzt3zAK 12 Jurors on @SubstackInc here https://t.co/C1XjacxPKQ 6 more on Patreon here https://t.co/678MSl3SfM
 — Inner City Press (@innercitypress) October 4, 2023
 </blockquote>
 
 <h2 class="p3" id="span-class-s1-bankman-fried-attempted-a-cover-up-made-false-statements-span">Bankman-Fried Attempted A Cover-Up, Made False Statements</h2>
 The prosecution went on to claim that Bankman-Fried attempted to arrange a cover-up by authorizing the creation of false financial statements in May and June of 2022.&nbsp; His lie was exposed when internal financial documents from Alameda Research were “leaked online,” leading to FTX’s eventual collapse, the prosecution said.
 Bankman-Fried was also accused of attempting to cover up his actions. This included tweeting false reassurances to customers, instructing employees to automatically delete communications, and falsifying contracts and documents. 
 “Defendant tweeted, quote, FTX is fine, assets are fine,” it said. “That was a lie. He told his employees to set their messages to auto-delete. Only the inner circle knew the truth.”&nbsp;
 The prosecution has promised to present a range of evidence during the trial, including documents, investor files, financial statements, and even Bankman-Fried’s deleted tweets. Witness testimony is also expected to play a crucial role in building the case against him.
 <h2 class="p3" id="span-class-s1-defence-points-finger-at-caroline-ellison-for-ftx-collapse-span">Defence Points Finger at Caroline Ellison for FTX Collapse</h2>
 The defence presented its opening statement, challenging the accusations against Bankman-Fried and attempting to shift the blame to Ellison.&nbsp;
 “Alameda was a crypto hedge fund……But [what] if the prices went down? Sam spoke to Ms. Ellison and urged her to put on a hedge. She didn’t do so…Things were tight. Ms. Ellison had not put on the hedges,” the defence said.&nbsp;
 Lead defence lawyer Mark Cohen emphasized Bankman-Fried’s lack of malicious intent, arguing that “he did not intend to steal from anyone,” and adding that he “acted in good faith” without defrauding anyone. Cohen urged jurors to consider real-life experiences and promised to provide a clearer account of what truly transpired.
 Cohen asserted that Bankman-Fried was not a thief but a hardworking individual who faced the overwhelming challenges of managing rapidly growing businesses, making hundreds of decisions daily. “As FTX grew, it had 300 employees,”he said. “No CEO could be everywhere.”&nbsp;
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 US v SBF, CASE FOR THE DEFENSE: Sam Didn't Steal, His Lawyer Tells Jury, It was Ellison Not Hedging – Inner City Press story here: https://t.co/R7iTrY7f9h Jurors on @SubstackInc here https://t.co/C1XjacxPKQ 12, 6 and more on Patreon here https://t.co/678MSl3SfM
 — Inner City Press (@innercitypress) October 4, 2023
 </blockquote>
 
 The government, on the other hand, portrayed Alameda Research and FTX as closely interconnected entities, even after Bankman-Fried stepped down as CEO. The defence justified this interconnectedness by pointing out Bankman-Fried’s majority ownership in Alameda, explaining that FTX required liquidity, and Alameda Research served as a market maker.
 “FTX had huge potential,” Cohen said. “Sure it had business relationships with Alameda. These were reasonable. Alameda had an account on FTX. Nothing wrong with that.”
 Bankman-Fried’s legal team did not spare criticism for the government’s key witnesses, including Ellison, as well as former FTX executives Gary Wang and Nishad Singh. They asserted that these witnesses were testifying to support the government’s case due to cooperation agreements. 
 “Cooperation in the real world means testifying in a way that supports the government’s case,” Cohen said, adding that this should cast doubt on the credibility of their statements.
 Leading up to the trial, Bankman-Fried’s lawyers had consistently argued that their client acted in “good faith” when providing loans to FTX and Alameda executives. They maintained that he had no intention of defrauding customers, investors, or lenders.&nbsp;
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 SBF's Cohen: At the end, we'll ask you to find Sam not guilty. Thank you. Judge Kaplan: We'll break until 2:40. Stories coming on https://t.co/3AcCBJNU41, https://t.co/C1XjacxPKQ… &amp; 6 https://t.co/z912mQtirv
 — Inner City Press (@innercitypress) October 4, 2023
 </blockquote>
 
 <h3 class="p2" id="span-class-s1-b-related-articles-b-span">Related Articles</h3>
 <ul>
 <li class="p5">FTX Founder Sam Bankman-Fried On Trial: The Big Three Witnesses Expected To Testify Against Him</li>
 <li class="p5">Sam Bankman-Fried’s Defence Against Fraud Charge Is ‘Irrelevant’ And Should be Struck Down, Prosecution Says</li>
 <li class="p5">Sam Bankman-Fried Denies Witness Tampering Allegations in Battle to Avoid Jail Before Trial</li>
 </ul>
 Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/prosecution-claims-sam-bankman-fried-empire-built-on-a-lie-defence-blames-ftx-collapse-on-caroline-ellison-tbt65258.html">https://thebittimes.com/prosecution-claims-sam-bankman-fried-empire-built-on-a-lie-defence-blames-ftx-collapse-on-caroline-ellison-tbt65258.html</a>
</div>

Prosecution Claims Sam Bankman-Fried Empire Built On A “Lie,” Defence Blames FTX Collapse on Caroline Ellison

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