Was FTX an empire ‘constructed on lies’ or a startup that ‘grew too rapidly’?

The prison trial of former cryptocurrency magnate Sam Bankman-Fried accomplished its second day on Wednesday. The prosecution and protection each gave opening statements, and interviewed the primary two witnesses, together with a buyer of FTX and Bankman-Fried’s former buddy and ex-Alameda and FTX worker Adam Yedidia.

The prosecution painted Bankman-Fried as somebody who knowingly dedicated fraud to attain nice wealth, energy and affect. The protection countered that Bankman-Fried acted in good religion, by no means meant to commit fraud or steal, and mainly bought in over his head.

The prosecution: Bankman-Fried’s empire was ‘constructed on lies’

In his opening argument, simply half-past midday, the prosecutor Thane Rhen started by portray an image. “One 12 months in the past, Bankman-Fired was on prime of the world.” 

And for what it’s value, he arguably was. 

Bankman-Fried was value billions of {dollars}, residing in a $35 million penthouse with mates and coworkers; he had two huge companies, a crypto alternate, FTX, and crypto hedge fund, Alameda Analysis (each of which have since gone bankrupt.)

“He had wealth, he had energy, he had affect,” Rhen stated. “However all of it was constructed on lies.”  

Rhen alleged that Bankman-Fried “took cash he didn’t have” to construct an empire. Rhen repeated a number of occasions, and loudly, that Bankman-Fried stole “billions of {dollars}” from FTX prospects so he may spend the cash on “lavish homes for himself, his mother and father, and his mates,” acquire affect in Washington and meet celebrities.