Benzinga - Few names have been as synonymous with both rapid success and a dramatic decline as Sam Bankman-Fried. His arrest almost 10 months ago marked one of the most shocking moments in the crypto industry’s history.
The trial for Bankman-Fried, the founder of FTX, began this week at the U.S. District Court for the Southern District of New York and is slated to last six weeks.
Welcome back to Financial Crime Weekly, your go-to column by Benzinga for insights into the shadowy realm of financial misconduct.
For years, Bankman-Fried’s ventures, such as FTX and Alameda Research, had been towering triumphs in the crypto realm. With an educational background from MIT and a sharp acumen for math, SBF quickly navigated the world of digital assets to build his empire.
Forbes once even listed him among the world’s wealthiest, all while he was under 30.
However, trouble for SBF and FTX began in November 2022. With rumors of mismanaged funds and regulatory scrutiny, FTX faced a liquidity crisis which saw its users panic. An acquisition by Binance was briefly on the table but was promptly retracted after concerning discoveries during their due diligence.
The aftermath was swift and brutal. FTX and its affiliates filed for bankruptcy while SBF, previously enjoying his success from a Bahamas penthouse, was arrested and later extradited to the U.S.
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The current charges against Bankman-Fried are heavy; they span wire fraud, securities fraud, money laundering, and more. He pled not guilty to the 12 charges against him, though former FTX executives, including Caroline Ellison, FTX tech chief Gary Wang, FTX engineering chief Nishad Singh, and most recently Ryan Salame pleaded guilty to similar charges.
If convicted, SBF faces up to 115 years in prison. As the trial unfolds, key witnesses, including Ellison, Singh, Wang, and former FTX insiders will take the stand.
Well known financial writer Michael Lewis chronicled Bankman-Fried’s downfall in his latest book, "Going Infinite: The Rise and Fall of a New Tycoon," which peels back the onion on SBF’s personal life and business.
Released on the same day the trial began, Lewis called the book a "note to the jury" while prominent crypto pundits like YouTuber Coffeezilla said the book is "a wild attempt to paint Sam Bankman-Fried as a well-meaning effective altruist who accidentally lost $8 billion dollars."
Read next: Meet The 12 People Deciding Sam Bankman-Fried’s Fate
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