Sam Bankman-Fried, the founder of FTX, arrived in court on Tuesday with a fresh haircut to kick off his criminal trial, where he encountered a jury pool that had their own stories of cryptocurrency investments gone awry..
Five potential jurors disclosed that they, their companies, or close family members had invested in crypto, all of which resulted in financial losses. One prospective juror mentioned that her employer had investments in both FTX and Alameda Research, a hedge fund formerly under Bankman-Fried’s control.
Judge Lewis Kaplan inquired, “Did your company make or lose money in these investments?” to which the juror responded, “Lose money.”
Another juror revealed that a crypto investment had “financially ruined” his twin brother, expressing uncertainty about separating personal experiences from the trial.
These accounts from the jury pool underscore the public-perception challenges confronting the 31-year-old entrepreneur, who faces allegations of embezzlement of billions in FTX customer funds, money laundering, and misleading investors and lenders.
The collapse of Bankman-Fried’s cryptocurrency exchange nearly a year ago played a significant role in the devaluation of numerous digital assets, causing considerable losses for investors who had flocked to the industry during the pandemic.
On Wednesday, Judge Kaplan is slated to whittle down a pool of 50 potential jurors to 12 men and women, along with six alternates, who will determine the founder’s innocence or guilt in connection with the largest crypto collapse in U.S. history.
Bankman-Fried, dressed in a gray suit with a neater haircut than his customary mop top, entered his plea of not guilty to the seven felony counts. He may potentially face six additional criminal counts in a separate trial.
Judge Kaplan outlined the charges, simplifying the case for the jurors, likening the transactions on FTX’s exchanges to buying and selling stocks on the New York Stock Exchange.
The crucial question posed was whether the jurors could remain impartial, regardless of their personal sentiments towards cryptocurrency.
Addressing Bankman-Fried directly, Judge Kaplan informed him of his right to testify in his own defense, emphasizing that the decision rested solely with the defendant and not his legal counsel.
“It’s your call,” Judge Kaplan asserted. “You could decide to testify against their advice, or not testify against their advice.” Bankman-Fried responded affirmatively, stating, “Yes.”
Bankman-Fried’s arrest last December led to an initial release on bail, but after allegations of witness tampering, Judge Kaplan ordered him to await trial in a Brooklyn administrative jail since August.
Prosecutors revealed on Tuesday that no plea deal had been extended to the defendant before the trial’s commencement.
As the trial got underway, Bankman-Fried faced approximately 50 potential jurors in the courtroom for questioning, with another 50 in an overflow room. He was asked to stand and face the candidates, while some disclosed their familiarity with news reports and podcasts about FTX and its collapse.
The selected jurors, compensated at a rate of $50 to $60 per day with travel reimbursements, will be prohibited from using cell phones during the trial, researching case-related information, or perusing news coverage.
The trial is anticipated to span six weeks, with opening statements and witness testimonies scheduled to commence on Wednesday.
As the trial unfolds, Sam Bankman-Fried faces a jury pool whose firsthand experiences with cryptocurrency investments underscore the challenges he must navigate in his defense.
Source: Yahoo Finance
