
The first few days of Sam Bankman-Fried's trial have not been going in his favor, a general consensus seems to suggest. Prosecutors for the U.S. Department of Justice are establishing the case that the founder of FTX was deeply involved in a long-term scheme to defraud customers and investors, throwing a wrench in the fallen crypto mogul's legal defense that he was oblivious to the rot taking shape at his exchange FTX and hedge fund Alameda Research.
Bankman-Fried always faced an uphill battle in this much-watched trial. published documents and allegations made by FTX's current leadership, under the direction of Enron's bankruptcy lead John Jay Ray III, as well as SBF's ill-conceived 'apology tour' following shortly after FTX closed shop have tainted public perception of the once beloved crypto savant. Renato Mariotti, partner at Bryan Cave Leighton Paisner LLP, said he is watching the case.
The defense lawyers with Cohen & Gresser have found his case tough, tough, tough, doesn't seem to be made any easier in the courtroom. It's widely reported that District Judge Lewis Kaplan has appeared visibly angry at Bankman-Fried's high-paid lawyers. While some onlookers said, '80%' of defense attorney Chris Everdell's questions were shot down during some attempts at cross-examination, a spokeswoman said. Prosecutors' objection to misleading questions became so routine, Judge Kaplan at times sustained an objection before it was offered.
It's early days yet, in a trial that could last six weeks. It's still unknown whether Bankman-Fried, sporting a new haircut, will testify. Mariotti, together with a seeming majority of lawyers, said that would be a gamble at best and like disastrous. Gary Wang, FTX co-founder and longtime friend to SBF, has admitted to committing fraud on the stand, referencing the'special privileges' offered to trading shop Alameda on FTX. While an ex-FTX developer, Adam Yedidia, said he quit in November 2022 after learning of the scheme to 'defraud' customers, a strong point that was stricken from the record.