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By Luc Cohen and Jody Godoy
NEW YORK (Reuters) -FTX founder Sam Bankman-Fried’s protection lawyer advised jurors on Wednesday that prosecutors in his fraud trial sought to painting him as a “villain” and a “monster” as a result of they may not show he stole billions of {dollars} from the cryptocurrency trade’s clients.
Legal professional Mark Cohen’s closing argument in Bankman-Fried’s trial in Manhattan federal courtroom got here after the prosecution urged the 12 jurors to convict Bankman-Fried, arguing he stole $8 billion out of straightforward greed in one of many largest monetary frauds in U.S. historical past.
Cohen mentioned prosecutors elicited testimony about Bankman-Fried’s intercourse life and look – the previous billionaire was recognized for his unkempt mop of curly locks and sporting shorts and T-shirts – to attempt to get the jury to dislike him.
“Repeatedly, the federal government has sought to show Sam into some type of villain, some type of monster,” Cohen mentioned. “And let’s face it, an ungainly highschool math nerd does not look significantly villainous. So what did they do? They wrote him into the film as a villain.”
In his closing argument, prosecutor Nicolas Roos mentioned Bankman-Fried directed different FTX executives to change the trade’s pc code to permit a hedge fund he owned, Alameda Analysis, to siphon buyer cash.
“This was a pyramid of deceit constructed by the defendant on a basis of lies and false guarantees, all to get cash,” Roos mentioned. “He had the conceitedness to suppose he may get away with it.”
Jurors are anticipated to start deliberations on Thursday after prosecutors give a rebuttal argument, which means Bankman-Fried might study his destiny simply shy of 1 12 months after FTX filed for chapter in a swift company meltdown that shocked monetary markets and worn out what had been his estimated $26 billion fortune.
The protection rested its case on Tuesday after Bankman-Fried underwent a second day of powerful cross-examination by the prosecution – the chance he ran by opting to testify on this personal protection. Bankman-Fried, who pleaded not responsible to 2 counts of fraud and 5 counts of conspiracy, tried over three days of testimony to persuade the 12 jurors of his innocence.
In all, the jury heard 15 days of testimony. Three of Bankman-Fried’s former shut confidantes, testifying for the prosecution after coming into responsible pleas, mentioned he directed them to commit crimes, together with serving to Alameda loot FTX and mendacity to lenders and traders in regards to the corporations’ funds.
Alameda used that cash to repay its lenders and to lend to FTX executives so they may make speculative investments and donate to U.S. political candidates, prosecutors say.
Beneath questioning from Cohen, Bankman-Fried portrayed himself as a busy CEO who left operational nuts and bolts to subordinates. He made errors that harmed clients and workers, Bankman-Fried admitted, however by no means defrauded anybody or stole cash.
“Poor danger administration is just not a criminal offense,” Cohen mentioned on Wednesday. “The query of whether or not Sam’s enterprise judgment was affordable, even when it later turned out to be mistaken, is just not a prison one.”
Roos argued Bankman-Fried’s digital fingerprints undermined the argument that he acted in good religion. Roos mentioned Bankman-Fried had checked out a doc way back to June 2022 exhibiting that Alameda had a big damaging steadiness on FTX, in addition to a spreadsheet Alameda’s CEO Caroline Ellison – a prosecution witness – deliberate to ship to lenders that hid its money owed to FTX.
“On account of sending out these pretend steadiness sheets they received new loans,” Roos mentioned, including that the monetary assertion hid the “crime-y, fraud-y components” of Alameda’s balances.
Bankman-Fried may face many years in jail if convicted on all counts. He has been jailed since August after Kaplan revoked his bail, having concluded he probably tampered with witnesses.