Sam Bankman-Fried ‘flew way too close to the sun’ – legal expert

By Logan Church, US Correspondent

A top New York white collar crime defence lawyer has told 1News US authorities are trying to send a message to those who might commit fraud using cryptocurrency.

This comes in the middle of the trial of cryptocurrency exchange founder Sam Bankman-Fried, who’s fighting seven fraud charges after his exchange FTX collapsed last year, with customers losing billions of dollars.

Among other things, he’s accused of using customer funds to prop up his investment firm Alameda Research.

This past week the boss of that firm Caroline Ellison testified against her former boss and romantic partner.

She claimed Bankman-Fried told her to take money from FTX and move it to Alameda Research.

She also told the court of Bankman-Fried’s ambition, recalling a conversation where he allegedly told her there was a “5% chance” he would become US president one day.

Top New York defence lawyer Randy Zelin – who has worked on large fraud cases – said this case was unique.

“It’s a rather breathtaking scope when you’re talking about billions of dollars that went “poof”,” he said.

“Often it’s not what you do, it’s what you do afterwards to cover it up.”

He said one of the challenges for the prosecution was to not lose the jury when explaining the world of cryptocurrency.

“Every great trial is about a story, and who can tell a more compelling story,” he said.

“All the government needs to do is keep it simple. It doesn’t matter if we’re talking about cryptocurrency or my pen — it’s the notion of the lie.”

Part of Bankman-Fried’s defence was expected to be around intent — that he never intended to defraud anyone, and was simply a bad manager, not a mastermind fraudster.

But if he was found guilty, he could face 110 years in prison.

Zelin said part of the government’s objective with this prosecution was deterrence for anyone else who might try to commit similar crimes.

“I think this case is a big splash to send a message to the next Sam Bankman-Fried — the music is going to stop. There will not be a chair for you. And you will be in a world of hurt.

“Like the story of Icarus, he flew way too close to the sun.”

Source: https://www.1news.co.nz/2023/10/16/sam-bankman-fried-flew-way-too-close-to-the-sun-legal-expert/