By James Davis
The long-awaited trial of former FTX CEO Sam Bankman-Fried started yesterday. United States prosecutors are accusing him of orchestrating one of the biggest financial frauds on US soil. According to the officials, Bankman-Fried defrauded FTX users and committed money laundering and securities fraud.
He got arrested in the Bahamas last December and was later moved to the United States, where he denied all charges at the start of this year. The FTX founder and ex-CEO was released and served house arrest until August 22, when the court nullified his bail for tampering with witnesses. He has been in the Metropolitan Detention Center since then.
Meanwhile, legal experts say the trial of Bankman-Fried may last for five to six weeks.
Judge Lewis Kaplan Releases Potential Jurors Who Have Ever Lost Funds in Crypto
On Tuesday morning, Judge Lewis Kaplan began interrogating potential jurors, questioning each one of them whether they had lost money after investing in crypto. Those who answered “yes” were dismissed.
Hours later, the court adjourned with no juror selected. Kaplan said the jury selection process would continue and close today.
One interesting development happened during yesterday’s court session. The federal prosecutors revealed the names of important individuals who were not included in the list of witnesses submitted a few days ago. These people may be requested to testify during the trial. One of them is Alameda Research co-CEO Sam Trabuccon. He has not been seen in public since leaving his role in late August 2022.
Bankman Files Lawsuit against FTX’s Insurance Firm
Before Bankman-Fried’s trial began, his attorneys sued insurance company Continental Casualty for not paying his defense costs. According to the lawyers, Bankman-Fried and FTX secured an insurance policy with Continental Casualty, requiring the firm to pay defense costs in the event of lawsuits. The Former CEO’s attorneys are now demanding the insurance firm cover $5 million in legal fees for their client.
More Potential Jurors Get Dismissed
While addressing potential jurors, Judge Kaplan asked them whether anyone felt that the nature of Sam’s case would make it challenging for them to decide fairly. At least ten jurors raised their hands, leading to their dismissal.