BlockNews
FOLLOW ON X
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
Home FEATURED

Sam Bankman-Fried’s Fraud Trial: Defense Claims “No Theft” of Customer Money

by BlockNews Team
October 4, 2023
in FEATURED, MEDIA, SOCIAL
Reading Time: 3 mins read
A A
1
SHARES
20
VIEWS
Share on XShare in TelegramShare on Reddit

The fraud trial of Sam Bankman-Fried, founder of FTX exchange, has resumed, with his defense team claiming he did not steal customer money. The alleged fraud charges date back to FTX’s launch in 2019 up until its bankruptcy in November 2022, which shocked financial markets.

Defense Claims “No Theft”

🚨 BREAKING: Prosecutor Thane Rehn during the SBF fraud case:

• "SBF was not who he appeared to be."

• "All of it was built on lies."

• "He was using his company, FTX, to commit fraud on a massive scale, and the money he was spending to build his empire."

• "It was money…

— BlockNews.com (@blocknewsdotcom) October 4, 2023
Via @blocknewsdotcom – X

During the opening statements, defense lawyer Mark Cohen acknowledged that FTX lent money to Bankman-Fried’s hedge fund, Alameda, but claimed that he “reasonably believed” the loans were permitted and backed by collateral. Cohen argued that Bankman-Fried didn’t defraud anyone as he had acted in good faith and there was no theft.

Key Aspects of FTX’s Business Overlooked

Cohen argued that the startup grew so rapidly that some key aspects of FTX’s business like risk management were overlooked. He went on to say that “No one person – no one CEO, certainly not Sam could be everywhere and do everything.”

Prosecutor Thane Rehn said Bankman-Fried claimed in FTX’s terms of service that customer’s cryptocurrency would always belong to them, not the exchange, but “all of it was built on lies”. Rehn accused Bankman-Fried of committing fraud on a massive scale, using company FTX to take more than $10 billion from unsuspecting customers.

Growing Customer Base Helped Paper Over the Theft

Rehn argued that Bankman-Fried didn’t take the money all at once. Instead, a growing customer base helped him paper over the theft. However, Rehn claimed that Bankman-Fried directed customers to deposit their money into accounts controlled by Alameda. He also alleged that Bankman-Fried used FTX’s computer code to allow Alameda to withdraw deposits.

Inner Circle Expected to Testify Against Bankman-Fried

Prosecutors are expected to call three former members of Bankman-Fried’s inner circle to testify against him, including Caroline Ellison, former Alameda chief executive, and former FTX executives Nishad Singh and Gary Wang. All three have pleaded guilty and agreed to cooperate with prosecutors.

Bankman-Fried’s trial is set to last for two weeks. If he is convicted, he could face up to 20 years in prison.

Tags: FTXLawsuitSam Bankman-Fried
TweetShareShare
Previous Post

Bankrupt CeFi Firm Haru Invest Hints At Asset Recovery

Next Post

UBS Pioneers Capital Tokenization on Ethereum in New Pilot

DON'T MISS THESE! HOT OFF THE PRESS

Toncoin and Telegram: The Sleeping Giant of 2025?
BITCOIN

Toncoin and Telegram: The Sleeping Giant of 2025?

July 1, 2025
SEC Plans Shortcut for Crypto ETFs With New Listing Rules
CRYPTO

SEC Plans Shortcut for Crypto ETFs With New Listing Rules

July 1, 2025
Cardano’s Midnight Airdrop: A Game-Changer for ADA Holders and CNT Tokens
CARDANO

Cardano’s Midnight Airdrop: A Game-Changer for ADA Holders and CNT Tokens

June 26, 2025
Coinbase Smashes Through All-Time Highs: Here is What This Means for Your Bags
CRYPTO

Coinbase Smashes Through All-Time Highs: Here is What This Means for Your Bags

June 26, 2025
U.S. Government to Pass Crypto Market Legislation by September 2025: Here is What We Know
CRYPTO

U.S. Government to Pass Crypto Market Legislation by September 2025: Here is What We Know

June 26, 2025
What is Cardano ADA, and is it Worth Buying in 2025?
CARDANO

What is Cardano ADA, and is it Worth Buying in 2025?

June 25, 2025
Load More

Related News

Anime 2.0 Revealed: Studio Azuki and the New Wave of Anime Storytelling

Anime 2.0 Revealed: Studio Azuki and the New Wave of Anime Storytelling

July 1, 2025
Pi Coin in July 2025: Rebound Brewing or Another Breakdown?

Pi Coin in July 2025: Rebound Brewing or Another Breakdown?

July 1, 2025
VeChain Struggles to Regain Steam After December Peak

VeChain Struggles to Regain Steam After December Peak

July 1, 2025
Shiba Inu’s Golden Cross Sparks $110M Whale Surge as Pippen Joins the Party

Shiba Inu’s Golden Cross Sparks $110M Whale Surge as Pippen Joins the Party

July 1, 2025
Toncoin and Telegram: The Sleeping Giant of 2025?

Toncoin and Telegram: The Sleeping Giant of 2025?

July 1, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • HOME
  • CRYPTO
  • MEMECOINS
  • TECHNOLOGY
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.