The highly anticipated trial of Sam Bankman-Fried kicked off this Tuesday in a Manhattan federal court, and it’s making headlines as one of the most significant financial crime cases in U.S. history.
The Charges: Bankman-Fried, the former CEO of FTX, is facing a barrage of charges, including wire fraud, securities fraud, commodities fraud, money laundering, and campaign finance violations. The campaign finance charge was dropped, but that still leaves him with a total of seven counts. He was initially arrested in December 2022 and faced even more charges, like bank fraud and bribery of a foreign government. If convicted on all counts, he could potentially be looking at up to 110 years behind bars.
Trial Mechanics: The trial is in full swing, with jury selection underway. Once the jury is locked in, opening arguments are set to begin on October 4, and the trial is expected to stretch for about six weeks.
Key Players: The prosecution has a team of eight lawyers, including seasoned attorneys like Danielle Sassoon, a former U.S. Supreme Court law clerk, and Nicholas Roos, known for prosecuting an insider trading case against Joe Lewis. The star witness for the prosecution is expected to be Caroline Ellison, a former colleague of Bankman-Fried. His defense team includes heavyweights like Mark S. Cohen, a white-collar criminal attorney, and Christian Everdell, who was part of the prosecution team in the “El Chapo” case.
Challenges Ahead: Bankman-Fried and his legal team have some hurdles to overcome, including the testimony of at least four former colleagues. FTX’s interim CEO, John Ray III, isn’t on his side either, given his stance against Bankman-Fried’s actions. Bankman-Fried’s penchant for media attention, from TV appearances to Twitter threads and document leaks, might also come back to haunt him.
SEC Involvement: Besides the criminal trial, the SEC has a separate civil case against Bankman-Fried and is also suing his parents, Joseph Bankman and Barbara Fried, alleging they siphoned millions from FTX.
Recent Developments: Coinciding with the trial’s commencement, author Michael Lewis released his book “Going Infinite: The Rise and Fall of a New Tycoon,” which Apple acquired the rights to for around $5 million. In a recent “60 Minutes” interview, it was revealed that Bankman-Fried had allegedly contemplated paying former President Donald Trump $5 billion not to run in the 2024 election.