The government’s case against Sam Bankman-Fried, the founder of FTX and Alameda Research, relies heavily on text messages exchanged between Bankman-Fried and his crypto inner circle. These messages, which were entered as evidence in the trial, provide a clear picture of Bankman-Fried’s alleged crimes. Bankman-Fried is facing seven criminal charges, including wire fraud and money laundering. The government has presented Signal exchanges involving Bankman-Fried, his ex-girlfriend Caroline Ellison, and former friends and business executives. These messages date back to November 2021 and reveal the conversations that took place during the liquidity crisis at FTX. The messages show that while Bankman-Fried publicly reassured customers, executives were growing increasingly concerned about the shortfall in funds.
In one message thread titled “small group chat,” Bankman-Fried discussed potential actions to address the crisis. He suggested halting withdrawals, sending confident tweets, and reaching out to firms for cash. Later, Bankman-Fried shared different ideas to give false hope to customers that they would receive free tokens if they kept their funds on the platform. The messages also reveal how Ellison sought guidance on messaging and handling Alameda’s all-hands meeting. She eventually disclosed that Alameda had borrowed money and used FTX customer funds for investments. The trial also highlighted conversations between Bankman-Fried’s circle and Binance CEO Changpeng Zhao regarding FTX’s downfall.
The government’s reliance on these text messages aims to prove that Bankman-Fried orchestrated a financial fraud. The messages paint a damning picture of his actions during the crisis at FTX and support the prosecution’s claims. The trial will determine whether Bankman-Fried is guilty of the charges brought against him.
Hot Take: Examining Text Messages as Evidence in Sam Bankman-Fried’s Trial
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