As the trial approaches its conclusion, what matters most are the crimes charged in the indictment against Bankman-Fried and the evidence introduced at trial.
Reviewing Sam Bankman-Fried’s testimony over the last few days—first on direct examination, then on cross examination, and then again on redirect—one might be left with the impression that the 31-year-old former CEO of FTX and founder of Alameda Research is on trial because both collapsed. He is not. Thus, on the eve of closing arguments, and as the trial approaches its conclusion, what matters most are the crimes charged in the indictment against Bankman-Fried and the evidence introduced at trial.The Trial Is Not About Whether FTX Or Alameda Research Collapsed
As a refresher, Bankman-Fried is on trial for seven separate crimes: wire fraud on customers of FTX; conspiracy to commit wire fraud on customers of FTX; wire fraud on lenders to Alameda Research; conspiracy to commit wire fraud on lenders to Alameda Research; conspiracy to commit securities fraud on investors in FTX; conspiracy to commit commodities fraud on customers of FTX in connection with purchases and sales of cryptocurrency and swaps; and conspiracy to commit money laundering.
For each of those crimes, the jury will be asked to reach a separate verdict as to whether Bankman-Fried is guilty or not guilty. The jury will not, however, be asked whether Bankman-Fried’s acts caused FTX or Alameda to collapse.
Yes, in its closing argument to the jury, the government is likely to point out that Bankman-Fried’s crimes did ultimately lead to the collapse of FTX and Alameda. Moreover, the defense will surely argue that Bankman-Fried wished he implemented better risk management, and that running FTX was like building an airplane while flying it—arguments to which the defense has alluded throughout the case.
