FTX Founder Set to Testify in Multibillion-Dollar Cryptocurrency Empire Collapse Trial

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FTX Founder Set to Testify in Multibillion-Dollar Cryptocurrency Empire Collapse Trial

FTX founder Sam Bankman-Fried is preparing to testify in his fraud trial as prosecutors in New York rested their case. The trial centers around the collapse of Bankman-Fried's cryptocurrency empire, which resulted in billions of dollars in losses. Prosecutors argue that the losses were caused by Bankman-Fried's excessive spending on investments, donations, and a lavish lifestyle. Defense lawyers are expected to question Bankman-Fried for approximately five hours following brief testimony from two other witnesses. Despite a request from the defense to acquit Bankman-Fried, the judge denied it on the grounds that sufficient evidence had been presented. Bankman-Fried, who has pleaded not guilty, is accused of diverting funds from clients and investors for risky investments, luxury purchases, marketing campaigns, and charitable donations. Several members of Bankman-Fried's executive inner circle have testified against him, claiming he directed the spending of funds taken from FTX customers. Bankman-Fried's businesses collapsed in November of the previous year, leading to his arrest and extradition. The judge revoked his bail after determining that Bankman-Fried attempted to influence potential trial witnesses. Bankman-Fried's defense team has also expressed concerns about his ability to adequately prepare for trial while in custody. One of the witnesses who testified against him, his former girlfriend and former CEO of Alameda Research, Caroline Ellison, revealed that she doctored financial balance sheets in an attempt to hide the fact that Alameda was borrowing billions of dollars from FTX customers.