In a landmark federal case, two men were sentenced for manipulating the price of a cryptocurrency and defrauding investors, marking the first instance where “a jury in a federal criminal trial found that a cryptocurrency was a security and that manipulating cryptocurrency prices was securities fraud,” said the head of the Justice Department’s Criminal Division. […]
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Terraform Labs and Former CEO Do Kwon Found Liable for Civil Fraud by Jury
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Prosecutors Probe Sam Bankman-Fried’s Memory in FTX Case Without Jury
Federal prosecutors questioned Sam Bankman-Fried in an ongoing hearing on Wednesday about his message deletion practices and the alleged use of customer funds while he was CEO of now-bankrupt crypto exchange FTX.
FTX Founder Faces Intensive Cross-Examination by Prosecutors in Ongoing Trial
Prosecutors focused on Sam Bankman-Fried‘s use of the encrypted messaging app Signal, including his enabling of auto-delete features in 2021. Bankman-Fried said he did not seek specific legal approval for auto-deleting messages, but believed it was allowed under FTX’s document retention policy implemented that year. Bankman-Fried’s testimony was recorded by Matthew Russell Lee from the Inner City Press.
When asked if he should have preserved messages with former Alameda CEO Caroline Ellison containing financial spreadsheets, Bankman-Fried replied “Yes. For example, verbal discussions were not required to be reported.” Prosecutors also questioned if Bankman-Fried violated the policy by deleting messages about shutting down Alameda and its reported billion hole. He responded:
I don’t recall such conversations.
Prosecutors also asked about FTX customer funds being transferred through Alameda entity North Dimension bank accounts. Bankman-Fried signed documents listing it as a trading firm but said he was not aware of it actually conducting trades. When asked if he discussed the use of the account to accept customer funds with lawyers, Bankman-Fried said, “I’m not entirely sure.”
Bankman-Fried claimed he did not discuss with lawyers that the funds were coming from FTX customer accounts. “I would not characterize it that way. So no, I didn’t discuss that with lawyers,” he stated. Bankman-Fried maintained during testimony that he did not believe he should embezzle customer assets. He expressed this sentiment at a moment when responding to the prosecutor’s question wasn’t obligatory. Nevertheless, he emphasized his perceived necessity to provide an answer.
“You don’t have to answer after sustained,” Bankman-Fried’s lawyer Mark Cohen said. “Haven’t you been here for four weeks?”
The proceedings in Judge Kaplan’s courtroom are set to resume Friday morning Eastern Time (ET), with the prosecution team gearing up for an extensive line of inquiry. Despite facing multiple charges, Bankman-Fried has maintained a stance of innocence, entering a not guilty plea to all allegations. It’s noteworthy, just like the first part of his testimony, that the federal prosecutors conducted their interrogation in the absence of a jury.
What do you think about Bankman-Fried’s testimony and cross-examination by federal prosecutors? Share your thoughts and opinions about this subject in the comments section below.
Crypto Tycoon SBF in the Dock: Jury Selection Extended; Hearing Reveals Financial Carnage
Sam Bankman-Fried (SBF), the disgraced co-founder of the now insolvent cryptocurrency exchange FTX, concluded his first day of trial involving jury selection and voir dire questioning. The process extended into Wednesday as U.S. District Judge Lewis Kaplan eliminated several potential jurors on Tuesday.
Trial of FTX Co-Founder SBF Unveils Juror Crypto Losses on Day One of Voir Dire
A day earlier, on Tuesday, Sam Bankman-Fried (SBF) appeared in the courtroom sporting a considerably shorter haircut and accompanied by his legal counsel. Various media outlets reported on the jury selection and voir dire, including an extensive X thread from Matthew Russell Lee’s Inner City Press publication. Judge Kaplan and the court aim to select a total of 12 jurors and approximately six alternates, hoping to complete the process on Wednesday.
Lee’s coverage of Tuesday’s hearing revealed that several prospective jurors mentioned losing money in cryptocurrencies. One potential juror claimed their company invested in FTX and Alameda Research, experiencing financial losses. Another person stated their fiancé lost money investing in crypto assets, while a third individual worked for Signature Bank, which financed FTX transactions, according to Inner City Press.
FTX founder SBF was present at the hearing, consulting with his attorneys such as Andrew Cohen. Judge Kaplan instructed jurors not to conduct any external research or post about the case online. “It would not surprise me if some of you have heard about this case,” Kaplan remarked. He added that opening statements could commence mid-morning on Monday, October 9, 2023. During the hearing, SBF was observed typing on a court-provided air-gapped laptop.
One possible juror expressed concern that the case involved the death penalty and stated they could not participate if the punishment was so severe. Judge Kaplan reassured the juror that the death penalty would not be applicable in this legal matter. Over 70 prospective jurors were questioned by the judge and attorneys, leaving an estimated 50 candidates remaining to finalize the selection of 12 jurors and six alternates.
What do you think about SBF’s first day of trial and the jury selection difficulties? Share your thoughts and opinions about this subject in the comments section below.
Coinbase’s Legal Expert Outlines What To Expect In FTX’s Sam Bankman-Fried Jury Selection
Coinbase’s Chief Legal Officer (CLO) Paul Grewal has weighed in on what to expect in the jury selection in the trial of the former CEO of the defunct crypto exchange FTX, Sam Bankman-Fried (SBF), which is set to take place on October 3.
FTX’s Sam Bankman-Fried Jury Selection Should Be Quick
Grewal noted that the voir dire proceedings have generally improved over time, as in the past, the process could drag on for days. As such, he expects Sam Bankman-Fried’s jury selection to “move quick” as the court while trying to ensure a fair trial, also ensures not to waste the time of prospective jurors.
The jury selection for SBF’s trial is expected to last just a day (October 3) as, according to the trial calendar, the trial is set to officially commence on October 4, with the prosecution set to open its case on that day.
As part of the voir dire proceedings, both parties will question the potential jurors to determine their competency and identify any bias that could influence their decision. However, Grewal doesn’t expect Judge Lewis Kaplan, the judge in charge of Sam Bankman-Fried’s case, to be a mere bystander as he noted that federal judges “exercise a much hand over questioning” than their state counterparts.
According to him, these judges don’t just “hand over” the process to the lawyers because they understand that both parties aren’t looking for a fair jury but one that can help them win.
It is worth mentioning that Grewal has judicial experience as he was once a US magistrate judge for the United States District Court for the Northern District of California. During his time as a judge, he picked 35 juries, although they were in civil matters, unlike this, which is a criminal one.
The Jury And Its Composition
Sam Bankman-Fried’s jury is expected to comprise 12 jurors from all walks of life. They will be required to give a verdict on each of the defendant’s charges (SBF is being charged with seven counts of fraud-related charges). This verdict will be unanimous, with all jurors participating in it.
As regards the jury composition, Grewal noted that it was “critical to a fair outcome.” However, he stated that prosecutors prefer their case to depend on “damning evidence” rather than the juror makeup. A plausible reason could be that certain biases could exist depending on who the jury consists of, unlike damning evidence that can hardly be refuted.
The legal expert seems to be one of those foreseeing a conviction, as he added that there was no shortage of “damning evidence in this case” as Sam Bankman-Fried faces a statutory maximum sentence of 110 years if found guilty of all charges.
Jury Selection Controversy: Prosecutors Criticize ADHD, Effective Altruism Voir Dire Questions in Bankman-Fried Trial
Sam Bankman-Fried’s legal team and federal prosecutors are clashing over what can be asked of potential jurors before his trial begins next month. The defense and prosecution submitted dueling proposed questions on Thursday, with each side accusing the other of trying to inappropriately sway the jury pool.
SBF Team, Prosecutors Spar Over Voir Dire Questions
In a recent court proposal, Sam Bankman-Fried‘s attorneys asked to query prospective jurors on topics ranging from their views on cryptocurrencies to whether any have attention deficit hyperactivity disorder (ADHD) like their client. Prosecutors shot back in a 4-page letter, arguing the defense’s suggested questions were “unnecessary and time-consuming” and risked tainting the jury pool against the government’s case.
The legal tussle highlights how both sides aim to tip the scales in their favor even before Bankman-Fried’s high-profile trial gets underway. Jury selection is slated to start on October 3 for the case against the FTX founder, who stands accused of perpetrating one of the biggest financial frauds in U.S. history.
Bankman-Fried’s lawyers asked to question potential jurors on whether they have “completely ignore[d]” pre-trial publicity and if their client would be at a “disadvantage” given media coverage of his alleged billion scheme. Prosecutors called those types of open-ended questions about publicity “unnecessarily intrusive” and argued jurors simply need to attest they can be impartial.
The defense also proposed asking if jurors or their loved ones have ADHD like Bankman-Fried, saying it could affect their “perceptions” of his “physical behavior” and “body language” at trial. But the government countered that Bankman-Fried is medicated for ADHD and claimed he has a history of “using behavioral eccentricity to his advantage.” U.S. attorney Damian Williams wrote:
The description of the potential visible symptoms of ADHD is both vague and expansive and invites the defendant to disrupt the trial under the guise of exhibiting symptoms of ADHD. This is of particular concern given the defendant’s prior efforts to use behavioral eccentricity to his advantage.
Additionally, Bankman-Fried’s team sought to ask about jurors’ views on “effective altruism” – the philosophy that gaining wealth can maximize one’s ability to help humanity. Prosecutors alleged that the question improperly advances a “defense narrative” of Bankman-Fried as a do-gooder. Williams stated:
These questions are a thinly veiled attempt to advance a defense narrative that the defendant was simply ‘amassing wealth’ in order to ‘improve the world.’
In their objection letter, federal prosecutors asked that the court rely primarily on their “standard, neutral” set of proposed questions for voir dire. Those include asking potential jurors if they know Bankman-Fried or worked in crypto, and if they can impartially weigh evidence from cooperators against the FTX founder.
Jury selection is expected to take up to two weeks for Bankman-Fried’s trial. The 30-year-old founder faces up to 115 years in prison if convicted on fraud, conspiracy, and money laundering charges for allegedly looting customer deposits to plug losses at his hedge fund, Alameda Research. He has pleaded not guilty.
What do you think about the questions Sam Bankman-Fried wants to ask jurors? Share your thoughts and opinions about this subject in the comments section below.
Jury Convicts Crypto Ponzi Scheme OneCoins Lawyer on Fraud Charges
A Manhattan court convicted Mark Scott, OneCoin’s lawyer, for fraud after he laundered 0 million for the crypto Ponzi scheme.
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