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Here is What is at Risk and How We Got Here in the $8 Billion Sam Bankman-Fried Criminal Trial, Which Begins Today

Sam Bankman-Fried was a renowned industry giant who was living large in a $40 million condo in the Bahamas and ruled a $32 billion cryptocurrency empire a year ago. The now-disgraced founder and ex-CEO of the insolvent cryptocurrency exchange FTX will go on trial on Tuesday morning in a federal court in Manhattan, New York, for allegedly orchestrating one of the largest financial scams in American history.

The government’s case against Bankman-Fried, 31, the multi-week trial that begins today, and how we got here are all explained in the following paragraphs.

Sam Bankman-Fried’s trial or trials

The first of the man’s two distinct criminal trials, which will be held over the course of two days, will begin on Tuesday.

Bankman-Fried is accused of seven crimes in the first trial, including wire fraud, securities fraud, and money laundering, all of which are connected to the demise of the crypto empire he founded.

In a superseding indictment, it is claimed that Bankman-Fried misappropriated billions of dollars in client funds for personal expenses, including the purchase of more than $200 million in upmarket Bahamas real estate assets, as well as to pay for unsuccessful crypto hedge fund wagers. The government claims that two methods were used to transfer client money to Alameda: users transferring money directly into Alameda-owned accounts and a hidden backdoor that was baked in.

Source (CNBC)

SourceCNBC
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