Sam Bankman-Fried, the star witness in the case, arrived at a New York federal court Tuesday, where she is expected to give damning evidence against the one-time crypto wunderkind.
Bankman-Fried's former business partner and girlfriend, Caroline Ellison, is expected to give key testimony that will describe how he committed fraud on a massive scale.
Bankman-Fried, 31, also known as Bankman-Fried, is a former bankman-farmer.
In November 2022, FTX's cryptocurrency exchange system collapsed, unable to cope with huge withdrawal requests from customers panicked to learn that some of FTX's assets had been committed to risky operations by Alameda Research, Bankman-Fried's personal hedge fund.
In a statement, Ellison was CEO of Alameda, and haspleaded guilty to two counts of fraud and agreed to cooperate with the prosecution.
She was expected to give details of how the Alameda investment company used the FTX platform to cover massive losses, even as Bankman-Fried was assuring clients that their money was safe.
Bankman-Fried's lawyers will argue that their client had little handle on the inside workings of Alameda's business and point blame at Ellison for the alleged fraud.
While awaiting trial, Bankman-Fried was ordered out of house arrest and jailed after prosecutors alleged that the former FTX boss had leaked Ellison's diary entries to the New York Times.
On Friday, FTX co-founder Zixiao Wang, another close associate of Bankman-Fried's, said his FTX co-founder was willing to break the law and lie to enable the company and Alameda to post strong growth.