Close Associates of Sam Bankman-Fried to Take Stand Today in Ongoing Trial
As the trial of the former CEO of collapsed crypto exchange FTX Sam Bankman-Fried enters its third day, the prosecution is expected to call two close associates of the defendant to the stand.
Bankman-Fried faces seven counts bordering on fraud and related conspiracy to commit fraud with a possibility of spending over 100 years in jail if found guilty.
Today, Adam Yedidia, a close friend of SBF and a former employee of both FTX and its sister company Alameda is expected to appear for the second time since the trial began.
Also, Gary Wang, a close associate of SBF during their time at FTX is expected to make his first appearance on the stand today.
Wang is the co-founder of FTX who has been tipped as a key witness for the prosecution after he pleaded guilty to wire fraud and conspiracy to commit fraud leveled against him by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
During the investigation, it was revealed that Gary Wang and SBF go way back to their high school days and lived together alongside eight other roommates in the famous Bahamas penthouse.
The first day of the trial saw two witnesses, Adam Yedidia and Mark Juilliard, a victim of SBF’s alleged fraud who lost 4 Bitcoin (BTC) worth over $100,000 before the collapse of FTX.
In the weeks preceding SBF’s trial, several former associates and staff have been speculated to testify against him after they plead guilty.
The third day of the trial is scheduled to resume by 10:00 a.m. Eastern Time at a federal court in Manhattan, New York.
More problems for Bankman-Fried
Although SBF has pleaded not guilty, guilty pleas by his associates and further collaboration with the prosecution could spell doom for the former CEO, observers say.
Assistant U.S. Attorney Danielle Sassoon revealed during the jury selection a potential list of witnesses that might testify against SBF. They include; Caroline Ellison, former Alameda Research CEO, Gary Wang, former FTX COO, Constance Wang, and Nishad Singh
🚨 Former Alameda Research CEO Caroline Ellison has agreed to plead guilty to seven offenses, which include charges of wire fraud, securities fraud, and money laundering.— Cryptonews.com (@cryptonews) December 24, 2022
Read more 👇https://t.co/DpnRs7CxjA
In the opening statements, the prosecution also stated that Caroline Ellison had faults on her part for failing to install safeguards.
Nishad Singh, a childhood friend of SBF pleaded guilty to six charges of fraud in February and has apologized for the preceding events. “ I am unbelievably sorry for my role in all of this,”
In another development, two luxury private jets purchased by SBF are now the subject of forfeiture according to an Oct 4 filing by the US Department of Justice (DOJ).
Per the filing, the prosecution argues that the aircraft were purchased with fraudulent funds amid wider allegations.