Sam Bankman-Fried's trial is about to begin

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Sam Bankman-Fried's trial is about to begin

It's officially trial week, everyone, or as Bloomberg's Joe Weisenthal would likely put it, this is why we get up in the morning. He's been just nine months and 20 days since Sam Bankman-Fried was arrested at his home in the Bahamas. Today marks the last day before he is set to start the trial - in which he will win back his freedom - or be locked up for what a federal judge could say could be a very long time.

There will be thousands of pages of evidence presented and fought over in the next six weeks as U.S. prosecutors seek to prove that the former FTX founder knowingly defrauded customers and business partners.

As much as they were colleagues, Caroline Ellison, Nishad Singh and Gary Wang were close friends and roommates of Bankman-Fried. Ellison was emotionally invested in the FTX founder and troubled by the former couple's on and off relationship, which, according to a diary entry from her, slowly fizzled out in February 2022.

Did FTX lose more than $600 million worth of crypto? The company filed for bankruptcy in November, just two days after it filed for Chapter 11 of the Bankruptcy Act. A decent portion of those money sat in a wallet for a few months - and then started moving this weekend. Between Friday night and Sunday morning, around 15,000 ether was left in a wallet through various routers and privacy tools.

We never got an explanation for what, exactly, happened and how the exploit was carried out. I imagine federal investigators are probably closely tracking this episode, he said.

On a logistics note, Judge Lewis Kaplan ruled in favor of the DOJ's motion to prevent Bankman-Fried from getting into the weeds on what his lawyers may or may not have said about FTX's operations in his opening statement. Bankman-Fried's defense team can still raise the 'advice-of-counsel' defense later on, with notice to the court and the DOJ.

The defense said the defense's argument would be that FTX's in-house and external lawyers were part of decisions to use auto-deleting messaging platforms, set up legal entities in the U.S., loan funds to FTX and Alameda executives and other aspects of the FTX/Alameda relationship.