After three weeks of dramatic testimony, the fraud trial of ex-FTX CEO Sam Bankman-Fried is approaching its conclusion in New York this week. Federal prosecutors are slated to rest their case on Wednesday, October 26th, having examined close to 20 witnesses so far.
At the heart of the government’s argument is that Bankman-Fried knowingly deceived employees, investors, regulators, and customers while concealing an $8 billion hole between FTX and his Alameda Research hedge fund. Cooperating witnesses like Caroline Ellison and former FTX executives alleged SBF-directed fraud.
The defense has not confirmed if Bankman-Fried will testify or waive his case. His attorneys have struggled to counter the prosecution, missing key arguments in cross-examinations. One observer noted the immense 95% indictment rate when the government initiates a case.
Among last week’s highlights was FTX’s former engineering head alleging SBF ordered improper loans from customer funds. Ex-general counsel Ryan Sun also detailed a spreadsheet tracking $2.1 billion in undisclosed insider loans. Judge Lewis Kaplan scolded both sides for uninformed witnesses.
SBF faces up to 115 years in prison if convicted on fraud and conspiracy charges. The trial’s outcome could determine the fallen crypto mogul’s fate for perpetuating one of the biggest frauds in recent Wall Street history.
