Sam Bankman-Fried, accused of multiple counts of fraud and conspiracy, including wire fraud and conspiracy to commit money laundering, attended the second day of his much-awaited trial on Wednesday.
On 2nd day of trial the prosecution and defense presented their opening statements. Prosecutor Thane Rehn put forth allegations that Bankman-Fried misappropriated FTX customer funds for personal expenses, including real estate acquisitions, political donations, and settling debts of his crypto hedge fund, Alameda Research.
Contrarily, Mark Cohen, Bankman-Fried’s lawyer, refuted these allegations, painting his client as a “math nerd” who made sound business decisions in “good faith.”
Adam Yedidia, a former FTX developer and Bankman-Fried’s ex-college roommate, testified as the prosecution’s witness. Yedidia stated that he quit his job after discovering that FTX funds were used to pay off Alameda’s creditors in exchange for immunity.
Rehn, the prosecutor, asserted that Bankman-Fried granted Alameda “special access” to FTX accounts, enabling “unlimited withdrawals.” This accusation forms the crux of the state’s case against Bankman-Fried.
The trial will proceed with testimonies from the next two witnesses, Matt Huang, a former Sequoia partner, and Gary Wang, FTX co-founder.
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