FTX Collapse: Latest on the Sam Bankman-Fried Trial

Welcome to Bookmakers Review, where we’re all about the freshest, juiciest updates on the Sam Bankman-Fried Trial that’s shaking up the concrete jungle, of New York City.

This isn’t your typical courtroom drama – it’s a rollercoaster ride through the life and times of one crypto-savvy maverick. If you had an account at FTX to buy Bitcoin or Altcoins to play at the best crypto gambling sites, read on to find out the latest about SBF and his downfall.

The Sam Bankman-Fried History That Led to His Arrest

The year 2009, was the beginning of the cryptocurrency phenomenon and ten years later in the April of 2019, Bankman-Fried opened his exchange for derivatives of digital currency, FTX. By the end of 2021, Bankman-Fried was testifying in front of Congress trying to bring a new level of understanding and trust to the world of tech coinage.

Fast forward a year, to December 2022, and Sam Bankman-Fried was arrested on eight charges of financial fraud. Bankman-Fried owned another trading firm called Alameda Research and many the funds were reappropriated and diverted there in the weeks before the FTX collapse. The charges if proven guilty could result in the thirty-one-year-old child maths prodigy from California facing 115 years in prison.

Released on a $250 million bond, the entrepreneur had the bail bond revoked and returned to incarceration in August after allegations of witness tampering.

The first of two trials began on October 3rd.

Defence Requests Increased Medication for Bankman-Fried

The start of this week saw Sam Bankman-Fried’s lawyers request their client’s medication for ADHD (attention deficit hyperactivity disorder) be increased allowing him to focus better and possibly testify.

Nashad Singh Testified for Prosecution

On Monday, a childhood friend of Bankman-Fried’s brother, Nashad Singh, a top FTX executive added to his increasing problems when he told the court, how he had confronted the accused about the diverted billions from FTX to Alameda Research in the weeks before the collapse.

The jury was shown a picture of the terrace of a Bahamas luxurious penthouse that the two shared as he described a conversation between them after Singh learned that Alameda Research had borrowed millions of dollars of FTX customer funds that could not be repaid.

“Short On Deliverables”

Singh recalled that Bankman-Fried said, “We are a little short on deliverables.”

The testimony of Singh who is the third cooperating witness for the prosecution to prove that Bankman-Fried knew about the shortfall in customer funds long before the exchange collapsed.

The other two witnesses from Bankman-Fried’s inner circle Caroline Ellison and Gary Wang had testified previously.

The prosecution also used Singh’s testimony to highlight the high-flying lifestyle of Bankman-Fried and that he overspent wildly on celebrity acquaintances.

Certainly, FTX and Bankman-Fried took the marketing of cryptocurrency to new levels of acceptance through their lobbying of Congress and slick marketing.

The FTX advertising campaigns saw NFL legendary quarterback Tom Brady and supermodel Gisele Bundchen paid the big bucks for their part in television adverts. Even popular funnyman, Larry David advertised the exchange during the Super Bowl.

Marketing Campaigns

The costs of advertising to FTX for using celebrities were spelled out to the jury by Singh whose spreadsheet listed sponsorship deals with sports stars and celebrities at $1.13billion only eight months before the exchange collapsed.

Tuesday saw Bankman-Fried’s led defense lawyer, cross-examine Singh and refute the allegations, pointing out that the $130million spent for the naming rights on the NBA’s Miami Heat’s home arena was a 19-year-deal and $14 million only was spent on the project in 2021.

Forensic Accountant Gives Evidence on Wednesday

Wednesday’s proceedings saw the prosecution bring Peter Easton, an accounting director at Notre Dame on the stand with his knowledge of forensic accounting. Easton said, $11.3 billion in FTX funds were meant to be held in Alameda Research but there was only $2.3 billion were held in the bank account.

The prosecution is believed to be close to wrapping up their case against Bankman-Fried after Easton’s evidence.

Will It Be a Last Roll of the Dice for Sam Bankman-Fried?

All the comings and goings of the trial so far, point to a final roll of the dice for Sam Bankman-Fried in the coming days when he looks forced to take the witness stand in an attempt to avoid incarceration.

It appears widely accepted that the trial has not gone to plan for Bankman-Fried and his team so there will be a genuine feeling that he should take the stand.

The respected, Jacob Frenkel, a former federal prosecutor and partner at Dickinson Wright, said, he believes that Bankman-Fried views taking the stand as necessary if he hopes to win an acquittal”.