Trial for crypto kingpin Bankman-Fried begins

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Trial for crypto kingpin Bankman-Fried begins

The trial of former crypto kingpin Sam Bankman-Fried begins Tuesday in a Manhattan courtroom, less than a year after his trading platform FTX and an affiliate hedge fund sent shock waves through the crypto industry and well beyond. Federal prosecutors are primed to argue that Bankman-Fried orchestrated one of the biggest corporate frauds in history, in sharp contrast to his rumpled, do-gooder public image. They will try to convince the jury that he duped sophisticated investment professionals and everyday traders, spending billions of dollars on his own failed investments, buy real estate and other luxury items, and fund eye-popping amounts of campaign contributions to both sides.

The U.S. attorney's office has already negotiated guilty pleas from four of Bankman-Fried's former top lieutenants, and three of them will be testifying against him. This suggests that Bankman-Fried's lawyers have their work cut out over the course of what is set to be a six-week trial.

The successful altruist who said he would use his riches to secure humanity's future now faces charges of orchestrating one of the biggest financial frauds in history. Federal prosecutors, financial regulators, and a handful of his former top lieutenants allege that he used customer money from FTX, his crypto trading platform, to cover bad bets by his hedge fund, make real estate purchases, and contribute lavishly to political candidates.

He said in a statement that he was 'deeply sorry' and wants to do everything he can to make things right for victims. He has been working with the prosecution and is expected to testify on its behalf.