Crypto FTT quiet on trial day of Sam Bankman-Fried's trial

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Crypto FTT quiet on trial day of Sam Bankman-Fried's trial

The first day of FTX founder Sam Bankman-Fried's criminal trial included Bitcoin, Ethereum, Dogecoin, and Solana. But the exchange's native token, FTT, went notably unnamed.

The token's precipitous drop last November goes hand-in-hand with FTX's sudden collapse. As federal prosecutors presented their opening statement in New York District Court yesterday, there was an apparent effort to ease jurors into the realm of digital assets.

FTX filed for bankruptcy last year, resulting from a steep drop in FTT's price that resulted in a fatal flurry of withdrawals. The exchange's inability to get customers their money as they darted for the exit door ultimately led to FTX admitting it did not have 1:1 reserves of customer assets.

Crypto news site CoinDesk had revealed that Bankman-Fried's trading firm, Alameda Research, had large amounts of the token on its balance sheet. Binance CEO Changpeng Zhao said he would sell FTT holdings completely before FTX subsequently collapsed.

Cohen had been referring to FTT when he told jurors that customer funds diverted from FTX to Alameda were loans, and not a secret that Bankman-Fried only shared with a few members of his inner circle.

FTT's lack of attention contrasted with other tokens that were brought up as the government called its first two witnesses to the stand.

First, the government called on a commodities trader named Marc-Antoine Julliard to step down as a trader. The French-born resident of London, who had lost more than 100,000 GBP in FTX's failure, effectively introduced cryptocurrency as an asset to the eight women and four men who sit on the jury.

When asked to provide a few examples of cryptocurrencies, Julyliard said he also mentioned one occasion where he had deposited Dogecoin into his FTX account.

The second witness, Adam Yedidia, said the government's second witness, a man who was not identified, was lying in court.

Yedidia, a former employee of FTX and Alameda, met Bankman-Fried in college. He said he quit FTX after learning that Alameda Research had used FTX customer deposits to pay back its loan to creditors.