Crypto founder Sam Bankman-Fried faces trial in the US

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Crypto founder Sam Bankman-Fried faces trial in the US

Sam Bankman-Fried's name has been as synonymous with immediate success and a profound decline as Sam Bankman-Fried. His arrest just months ago marked one of the most shocking moments in the crypto industry's history.

The trial for Bankman-Fried, the founder of FTX, began this week in New York's U.S. District Court for the Southern District of New York.

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Bankman-Fried's businesses, such as FTX and Alameda Research, had been towering achievements in the crypto industry for years. SBF, a graduate of MIT and a renowned mathematician, quickly navigated the digital asset industry to build his empire.

Although he was under 30 years old, Forbes once listed him among the world's wealthiest men.

In November 2022, the problem began for SBF and FTX. FTX faced a liquidity crisis that resulted from rumours of mismanaged funds and regulatory scrutiny, causing its users to panic. Binance's acquisition was briefly up on the table, but was quickly retracted after concerning discoveries during their due diligence.

The aftermath was brutal, prompting a swift and remorseful reaction. FTX and its affiliates filed for bankruptcy, while SBF, who enjoys his success from a Bahamas penthouse, was arrested and later extradited to the United States.

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The charges against Bankman-Fried are extensive, including wire fraud, securities fraud, and money laundering. He pleaded not guilty to the 12 charges against him, though former FTX executives, including Caroline Ellison, FTX Tech Chief Gary Wang, FTX Engineering Chief Nishad Singh and most recently Ryan Salame, have pleaded guilty to similar charges.

If convicted, SBF faces up to 115 years in prison. With the trial coming to a close, key witnesses, including Ellison, Singh, Wang, and former FTX insiders, will take the stand.

Bankman-Fried's downfall was covered in his latest book, which peels back the onion on SBF's personal life and business.