Home Business Cocoa bean trader who lost $100,000 to FTX first witness in SBF trial

Cocoa bean trader who lost $100,000 to FTX first witness in SBF trial

by Mark Mendoza

The trial of Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, is officially underway in New York. Prosecutors are attempting to prove that Bankman-Fried misused billions of dollars of client funds, with the first witness, cocoa bean trader Marc-Antoine Julliard, testifying that he lost $100,000 with FTX.

Julliard shared his experience with FTX, highlighting the anxiety he felt when he tried to withdraw his funds and realized he couldn’t access them. He, like many other FTX customers, believed that his money was safe with the exchange and was drawn in by the strong financials and marketing efforts of the company.

The trial, which is expected to last six weeks, could result in a life sentence for Bankman-Fried if he is convicted. He is facing seven federal charges, including wire fraud, securities fraud, and money laundering. Bankman-Fried’s defense argues that clients should be accountable for their own decisions in buying and trading crypto and that he did not commit fraud.

Bankman-Fried, known as the “white knight” of crypto, appeared in court with a different appearance from his usual casual attire, wearing a suit and tie. Throughout the proceedings, he remained focused on the jury, who will ultimately decide his fate. His parents, who are also being sued by FTX’s new management, were present in court to support him.

The defense portrayed Bankman-Fried as a startup founder, explaining that there were no risk management measures in place and that he did not defraud anyone. They argued that the prosecution’s case is based on hindsight and that losing money does not equate to fraud.

The prosecution’s opening statement emphasized that everyday investors were the victims in FTX’s alleged scheme, with more than $10 billion being stolen from thousands of FTX customers. They accused Bankman-Fried of lying to users, investors, and lenders and using stolen funds for his own benefit, including making campaign contributions.

The trial will continue with further witnesses, including Bankman-Fried’s ex-girlfriend and ex-CEO of Alameda Research, Caroline Ellison. Prosecutors aim to show that Bankman-Fried used Alameda, a smaller and secretive company he founded, as part of his alleged scheme.

The trial will shed light on the actions of one of the most prominent figures in the crypto industry and determine the consequences for his alleged misuse of client funds. The outcome will have significant implications for the regulation and scrutiny of the cryptocurrency market moving forward.

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