Regardless of what anyone believes about cryptocurrency – whether they believe cryptocurrency is the future of money or whether they believe cryptocurrency is just a fad or scam – the most common misconception surrounding Sam Bankman's upcoming trial is Fried. Also known as SBF, it is related to cryptocurrencies.
Twenty years ago, special agents from the Drug Enforcement Administration and Internal Revenue Service, along with the United States Attorney for the Southern District of Florida, led an investigation that led to the indictment of a drug trafficking organization. Cocaine and heroin flowed into America, financed in part by Miami real estate. However, this was not the case with real estate. This includes drug trafficking and organizing financial transactions to circumvent reporting requirements.
The same goes for Bankman Fried, founder of cryptocurrency trading company Alameda Research and CEO of well-known cryptocurrency exchange FTX. Cryptocurrency is not studied. The lawsuit against Bankman-Fried is not related to cryptocurrencies. We are talking about cheating.
claim
The seven-count indictment accuses Bankman-Fried of wire fraud against FTX customers. conspiracy to commit wire fraud against FTX customers; Alameda Research Corporation, Wire Fraud; Alameda Research conspiracy to defraud lenders; conspiracy to commit securities fraud against FTX investors; Conspiracy to commit commodity fraud against FTX customers in connection with the purchase and sale of cryptocurrencies and exchange transactions; And conspiracy to commit money laundering.
Banman-Fried was essentially accused of defrauding FTX customer deposits and enriching himself with billions of dollars in embezzled funds, supporting FTX's operations, financing speculative venture capital investments, and paying Alameda's operating expenses. He is also accused of providing false information to FTX investors and Alameda creditors.
Bankman-Fried has pleaded not guilty and her trial is expected to begin on October 3.
How prosecutors try to prove their case against Bankman Fried
Prosecutors say they plan to call at least three of Bankman-Fried's alleged accomplices as witnesses. They also said they plan to contact other former Alameda and FTX employees, as well as FTX customers, FTX investors and Alameda creditors. They also indicated that they plan to hire a financial analyst who will uncover the nature and extent of the fraud committed by the bank.
When prosecutors file charges against SBF, jurors want to understand the history of Alameda and FTX. Prosecutors may begin calling witnesses to testify about the founding of Alameda in 2017 and FTX in 2019.
Prosecutors want jurors to feel comfortable with witnesses and documents frequently mentioning cryptocurrencies. That's why prosecutors may ask one of their first witnesses to explain to jurors how a retail business like Alameda operates or operates. And how exchanges like FTX work or work.
Similarly, prosecutors may want an early witness to explain to jurors how customers of a cryptocurrency exchange use fiat money, such as dollars, to make purchases, how transactions are recorded on the blockchain, and how customers can store them , trade or exchange. Cryptocurrency has returned to fiat money.
With this experience and insight, prosecutors can begin to build a case against Bankman-Fried.
Internal statement about SBF
According to court documents filed in the Bankman-Fried case, prosecutors may call at least three of Bankman-Fried's alleged associates as witnesses: Gary Wang, who co-founded FTX with Bankman-Fried and was FTX's chief technology officer; Nishad Singh, Head of Engineering, FTX; Carolyn Ellison, an employee of Alameda Research and then CEO of Alameda Research, agreed to cooperate with the government.
Wang, Singh and Ellison can provide valuable insider testimony about Bankman Fried's actions. They can also provide similarly valuable evidence about what Panman-Fried knew or intended when he committed these acts. The reason this evidence is important is that in order to convict Bankman-Fried of each crime, prosecutors must prove not only that he committed an illegal act , but also that he was in the requisite mental state . Do consciously or deliberately. Required by law.
The evidence necessary to prove that Panman Fried knew of these illegal acts or intended to commit them may come from statements, instructions or other actions made by him.
Prosecutors said they plan to present evidence that Bankman Fried misled customers, investors and creditors. In addition, Banman-Fried Wang and Singh stated that they wanted to provide evidence that Alameda wanted to prevent the theft of billions of euros from FTX customers by requiring them to implement functions in the FTX code.
Prosecutors also said they wanted to present evidence that Bankman-Fried provided false statements to the bank to open accounts to receive deposits from FTX customers. In addition, Banman-Fried stated that they intend to present evidence that FTX used client funds for political contributions and used informal donors to hide the source of donations to influence political and regulatory decisions. And most importantly, FTX.
Additionally, and most importantly, Wang, Singh and Ellison expect to clarify the extent of Panman Fried's control over the two companies.
FTX staff
Expect prosecutors to produce Alameda and FTX books and records, as well as emails, text messages or messages from messaging apps. Some of this evidence may come from Wang, Singh or Ellison. However, some of these items will certainly be provided by other Alameda and FTX employees.
Some of these employees may be asked to speak about Bankman Fried's control of the two companies.
Humanity of the matter
It's easy to hear about the millions or billions of dollars changing hands around the world, especially digitally, and feel disconnected. However, there were real people affected by the events at Alameda and FTX. If what happened was a crime and Bankman-Fried was criminally liable, prosecutors would want jurors to know about it. It adds a human touch to the issue.
Prosecutors said they plan to call FTX customers, FTX investors and Alameda creditors as witnesses in court.
Don't be surprised if prosecutors introduce some FTX ads on behalf of an FTX client into the testimony of celebrities like Tom Brady, Gisele Bündchen and Larry David.
Don't be surprised if prosecutors show this ad to jurors.
After showing these ads to the jury, don't be surprised if the prosecution asks the witness how the ads influenced his decision to become or continue to be an FTX customer.
Take it to the judges.
The FBI is leading the SBF investigation, and prosecutors may call an FBI special agent to explain how Bankman-Fried conspired with others to defraud. This testimony should be interesting.
Finally, prosecutors will call in their experts to explain the nature and extent of Bankoman Fried's fraud. The numbers can be surprising, and ultimately are not explained by Bitcoin, Ether or any other cryptocurrency, because the problem at Bankman-Fried is not related to cryptocurrencies. We are talking about cheating. Cheating finds a way.