Second day of fraud trial expected to begin Wednesday

Second day of fraud trial expected to begin Wednesday

The second day of the criminal fraud trial of FTX founder and former CEO Sam Bankman-Fried was expected to begin on Wednesday, with the first witnesses likely to testify by afternoon.

Jury selection is expected to begin by mid-morning and will be followed by opening statements from the prosecution and defense, both of which are expected to last around an hour each.

The government will begin calling suspects by Wednesday, and their key witness is Caroline Ellison, Bankman-Fried's ex-girlfriend and former top deputy who was the CEO of his hedge fund, Alameda Research, at the time of his crypto empire's collapse.

Bankman's father, Joseph Bankman, and brother, Gabriel Bankman-Fried, are also on the prosecution's list of potential witnesses. Fox Business was told either of them would face hostile questioning on the stand, given they are under suspicion for involvement with Sam Bankman-Fried's alleged criminal activities.

The former White House communication director of the Trump administration, Anthony Scaramucci, was also named as a possible witness for prosecutors. Scaramucci has not been called to testify as of Tuesday afternoon, according to a source close to the news network.

Bankman-Fried was indicted on several charges in connection to the collapse of FTX, once the second-largest crypto exchange in the world, after a surge of withdrawals following reports that the exchange had merged assets with Alameda.

The collapse resulted in billions in customers losing millions of dollars, and federal prosecutors in Manhattan have accused Bankman-Fried of misleading investors and lenders and stealing billions of dollars in customer funds to buy real estate, make political contributions and make up for losses at Alameda.

Bankman-Fried faces seven federal charges of fraud and conspiracy. It is expected to last about six weeks and a second criminal trial is set for March, which will address separate charges including campaign finance violations.

Bankman-Fried has acknowledged that FTX had inadequate risk management but contends that it did not steal funds. He has pleaded not guilty to all charges brought against him.