Opening arguments begin in the Sam Bankman-Fried trial

Prosecutors and defense attorneys in the criminal case of former FTX CEO Sam Bankman-Fried, also known as SBF, painted a very different picture for the jury during the trial.

On October 4, in a New York court, Assistant US Attorney Tane Ren and SBF attorney Mark Cohen presented opening arguments to a 12-member jury regarding the role of crypto exchange FTX and Bankman-Fried in the case. The comments came after more than a day of solicitation, with Judge Louis Kaplan completing the selection of 12 members of the jury and six alternates.

According to an X (formerly Twitter) thread from Inner City Press on the incident, Rehn claimed in court that SBF used FTX client money to enrich itself and convinced lawmakers through campaign donations and testimony — credible. Assistant U.S. Attorney Bankman-Fried argued that FTX repeatedly lied to consumers, employees and the general public about the “hole” it found itself in when the exchange's financials were released in November 2022.

“The hole was too big,” Ren said. “So the defendant blames the crash on the crypto market. But he committed fraud. That's what the evidence in this trial shows. The insider hears. His girlfriend will tell you how they stole money together.”

Cohen, who gave his opening remarks after Rehn, blamed some of the issues leading to FTX's downfall on SBF's ex-girlfriend and former Alameda Research CEO Caroline Ellison, as well as Binance CEO Changpeng Zhao, or CZ. Ellison said he did not act to freeze some of Almeida's investments, despite Bankuman-Fried's urging to do so, and CZ's social media posts led to a run on FTX.

SBF's defense team presented the former FTX CEO as someone who “worked with integrity” in the middle of a company that was growing rapidly in a volatile crypto market. He also pushed back on the narrative that SBF was a “bad guy” for taking out funds, owning a house in the Bahamas and paying celebrities to support FTX, saying, “Trying to get Tom Brady is not a crime.”

Related: 5 highlights from Sam Bankman-Fried's first trial

Oct. 4 marked the second day of Bankman-Fried's initial criminal trial, which is expected to last about six weeks. He has pleaded not guilty to seven counts of fraud related to FTX, and will appear in court a second time in March 2024.

Among the highlights of SBF's first week on court was the former CEO of FTX, who sported a new haircut for the first time. Ellison, along with other former executives connected to the crypto exchange, may testify against SBF as the trial continues.

Magazine: Can you trust crypto exchanges after the FTX collapse?

This is a developing story, and more information will be added as it becomes available.