Updates from the Federal Trial against FTX's Sam Bankman-Fried

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Updates from the Federal Trial against FTX's Sam Bankman-Fried

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During the past week, I have been waking up early and heading to the federal courthouse in lower Manhattan to witness the ongoing trial of Sam Bankman-Fried, the founder of FTX. Here are the latest developments from the trial so far.

It has only been a few days since the trial began, but we have already heard testimonies from various individuals, including an FTX co-founder, a former developer, a customer, and an investor.

In the initial three days of the trial, the opening arguments and testimonies were presented by four people: FTX customer Marc-Antoine Julliard, former FTX developer Adam Yedidia, Paradigm co-founder Matt Huang, and FTX co-founder Gary Wang.

These witnesses shared their personal stories highlighting the harm caused by FTX and its subsequent collapse. Here are some significant revelations we have learned:

- According to Wang, FTX did have an insurance fund mentioned on its website, but the stated amount was essentially a randomly generated figure.

- Huang mentioned that Paradigm had reduced its $278 million investment in FTX to zero.

- The enforcement of the U.K.'s crypto promotions rule is causing certain crypto firms to suspend their services, leading to a noticeable impact.

If you have any suggestions for future discussions or feedback, feel free to email me at nik@coindesk.com or find me on Twitter @nikhileshde.