FTX Founder’s Criminal Trial: Bitcoin, Ethereum, Dogecoin, and Solana Mentioned, but FTT Token Overlooked
During the first day of FTX founder Sam Bankman-Fried’s criminal trial, cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, and Solana were discussed. However, FTX’s native token, FTT, was notably left out of the proceedings. This omission is significant because FTT’s steep drop in value last November was closely tied to FTX’s sudden collapse.
The prosecutors made efforts to familiarize the jurors with digital assets. Assistant U.S. Attorney Thane Rehn described Bankman-Fried as someone who “stole billions of dollars from thousands of people” and “spent other people’s money for himself.”
FTX filed for bankruptcy after a sharp decline in FTT’s price triggered a wave of withdrawals. The exchange’s inability to return customers’ funds led to the admission that it did not hold 1:1 reserves of customer assets.
CoinDesk reported that Bankman-Fried’s trading firm, Alameda Research, had significant amounts of FTT on its balance sheet. Binance CEO Changpeng Zhao also announced that his exchange would sell its holdings of FTT before FTX collapsed.
Bankman-Fried Faces Charges Amidst Allegations of Fraud and Conspiracy
Sam Bankman-Fried is facing seven charges related to fraud and conspiracy. He has pleaded not guilty. His lead lawyer, Mark Cohen, argued that FTX’s downfall was a result of a “perfect storm” and that Bankman-Fried acted in good faith and took reasonable business measures.
Cohen suggested that the customer funds diverted from FTX to Alameda were loans and not a secret known only by a few insiders, as the prosecutors claimed. He argued that Bankman-Fried reasonably believed that these loans were permitted and backed by security and collateral.
FTT Token Receives Little Attention in Trial
Unlike other cryptocurrencies mentioned during the trial, FTT received minimal attention. The government’s first witness, commodities trader Marc-Antoine Julliard, introduced cryptocurrencies to the jury by mentioning Bitcoin, Ethereum, and Dogecoin.
The second witness, Adam Yedidia, a former employee of Alameda and FTX, stated that Bitcoin, Ethereum, and Solana are popular cryptocurrencies. Yedidia resigned from FTX after discovering that Alameda Research had used FTX customer deposits to repay its loan to creditors.
Hot Take: FTT Token’s Absence Raises Questions About Its Role in FTX’s Collapse
The absence of FTT token from the discussions during Sam Bankman-Fried’s criminal trial raises questions about its significance in FTX’s collapse. While other cryptocurrencies were mentioned, the omission of FTT suggests that its role may not be as central to the case as previously thought.
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