The trial of embattled crypto executive Sam Bankman-Fried has begun – with prosecutors claiming he stole more than $10bn (£8.2bn) from unsuspecting customers.
Almost a year after FTX spectacularly collapsed, leaving millions of people out of pocket, a court heard that the 31-year-old’s multibillion-dollar empire was “built on lies”.
Bankman-Fried has been accused of using customer funds to make risky bets at sister trading firm Alameda Research – with a huge black hole in the company’s finances emerging when crypto markets suffered a sharp downturn.
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What is the main aim of cryptocurrency?
FTX abruptly halted withdrawals last November and subsequently went bankrupt, prompting desperate efforts to recoup funds on behalf of victims.
The fallen entrepreneur – the son of two Stanford law professors – has also been accused of concealing crimes by backdating documents and deleting messages.
But during opening statements at a federal court in New York, Bankman-Fried’s lawyers described him as a “math nerd who didn’t drink or party” – a man who had acted in good faith.
Mark Cohen told the jury: “There was no theft. Sam didn’t defraud anyone. Sam didn’t intend to defraud anyone.”
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The defence painted a picture of a businessman who was spread too thin, adding: “It is not a crime to be a CEO of a company that filed for bankruptcy.”
Bankman-Fried has pleaded not guilty to seven counts of fraud and conspiracy, and could face 115 years behind bars if convicted.
On Wednesday, prosecutors sought to depict of a budding entrepreneur who was “on top of the world” – living in a $30m (£25m) apartment in The Bahamas, jetting around the world on private plans, and socialising with celebrities.
He also made big political donations to gain influence over cryptocurrency regulation in Washington – with Democrats and Republicans alike later pressured to return the cash.
On Wednesday, the jury was shown FTX adverts starring the comedian Larry David and the NFL star Tom Brady – TV spots that were broadcast to millions during the Super Bowl.
Those commercials had described the doomed exchange as the “safest and easiest way to buy and sell crypto”.
But the prosecution claimed that, behind the scenes, FTX was being used to “commit fraud on a massive scale”.
SBF’s inner circle to testify
Prosecutors are set to call three former members of Bankman-Fried’s inner circle to testify against him.
Ex-Alameda executive Caroline Ellison and FTX bosses Nishad Singh and Gary Wang have all pleaded guilty, and have agreed to cooperate with prosecutors.
The jury heard they will give “an insider’s view into how the crimes occurred”.
Defence lawyers disagreed – and argued all three had failed to do their jobs and set up safeguards to protect FTX from falling crypto prices.
Bankman-Fried was initially under house arrest at his parents’ home in California, but was jailed amid accusations he had tried to tamper with witnesses.
It was the first time a US president had been convicted of or charged with a criminal offence.
Trump had tried to cover up “hush money” payments to a porn star in the days before the 2016 election.
When Stormy Daniels‘ claimsof a sexual liaison threatened to upend his presidential campaign, Trump directed his lawyer to pay $130,000 (£102,000) to keep her quiet.
The payment buried the story and he later won the presidency.
Trump denied the charges and said the case was politically motivated. He also denied the sexual encounter took place.
New York State Supreme Court Justice Juan Merchan today delayed the sentencing, which had been due to take place on Tuesday.
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The office of district attorney Alvin Bragg had asked the judge to postpone all proceedings until Trump finishes his four-year presidency, which starts on 20 January.
Trump’s lawyers say the case should be dismissed because it will create “unconstitutional impediments” to his ability to govern.
Responding to Friday’s decision, a Trump campaign spokesman said: “The American People have issued a mandate to return him to office and dispose of all remnants of the Witch Hunt cases.”
The judge set a 2 December deadline for Trump’s lawyers to file their motion, while prosecutors have until 9 December to respond.
He did not set a new date for sentencing or indicate when he would rule on any motion to throw out the case.
Even before Trump’s win in this month’s election, experts said a jail term was unlikely and a fine or probation more probable.
But his resounding victory over Kamala Harris made the prospect of time behind bars or probation even less likely.
Trump, 78, was also charged last year in three other cases.
One involved him keeping classified documents after he left office and the other two centre on alleged efforts to overturn his 2020 election loss.
A Florida judge dismissed the documents case in July, the Georgia election case is in limbo, and the Justice Department is expected to wind down the federal election case as it has a policy of not prosecuting a sitting president.
Trump last week nominated his lawyers in the hush money case, Todd Blanche and Emil Bove, for senior roles in the Justice department.
When he re-enters the White House, Trump will also have the power to shut down the Georgia and New York cases.
Donald Trump has pledged for years to surround himself with ultra-loyalists who can mould his government to his vision without barriers.
That’s precisely why he picked Matt Gaetz. Now he’s out, Pam Bondi is in and she’s equally loyal.
Gaetz was uniquely unpopular on Capitol Hill but ultra-MAGA and ultra-loyal to the president-elect.
He was chosen by the president-elect to do his bidding inside the Justice Department as attorney general.
Critics called his pick “a red alert moment for democracy” and the man a “gonzo agent of chaos” – language that would surely only affirm Trump’s decision in his own proudly disruptive mind.
If it wasn’t for the fact that the president-elect is himself a convicted felon, and a man found liable in a civil court of his own sexual offences, the prospect of Gaetz, with all his baggage, making it through the nomination process would have seemed remote.
But Donald Trump’s return to the White House suggested anything is possible.
And so, beyond his loyalty, Gaetz was Trump’s test for his foot soldiers on Capitol Hill. How loyal were they? Would they wave through anyone he appointed?
It turns out that Gaetz, and the storm around his private life, was too much for a proportion of them.
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At least five Senate Republicans were flatly against Matt Gaetz’s confirmation. We understand that they communicated to other senators and those close to Trump that they were unlikely to be swayed.
They included the Republican old guard like Senator Mitch McConnell.
Beyond the hard “no” senators, there were between 20 and 30 other Republicans who were very uncomfortable about having to vote for Gaetz on the Senate floor.
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Trump pick Matt Gaetz withdraws
The key question is whether Gaetz was Trump’s intentional wild card crazy choice that he knew, deep down, would probably never fly.
Was Gaetz the candidate he had accepted would be vetoed by senators – who would then feel compelled to wave the rest of his nominees through?
Will Pete Hegseth’s alleged sexual impropriety concern them as they consider the suitability of the former Fox News host and army major to run the Department of Defence?
What about Tulsi Gabbard, the candidate Russian state TV calls ‘our girl’, and the appropriateness of her running America’s intelligence agencies?
These are all appointments that the politicians on Capitol Hill must consider and confirm in the weeks ahead.
We don’t yet know who Trump will choose to direct the FBI.
There are some names being floated which will make the establishment of Washington shudder but then that’s precisely why Trump was elected. He is the disrupter. He said so at every rally, on repeat.
He was quick to pivot to another name to replace Gaetz.
Bondi is the former attorney general of Florida. Professionally she is in a different league to Gaetz. She’s been a tough prosecutor, with a no-nonsense reputation.
She is also among the most loyal of loyalists. Her attachment to Trump stretches way back.
I first came across her in Philadelphia in November 2020 when she was among Trump surrogates claiming the election back then had been stolen from them by Joe Bidenand the Democrats.
She was a key proponent of the false claims the election had been rigged and Trump was the rightful winner.
The court cases concluding that was all nonsense didn’t seem to convince her.
Now she is poised to head up the Department of Justice as the country’s top law enforcement official.
Within hours of taking office, president-elect Donald Trump plans to begin rolling out policies including large-scale deportations, according to his transition team.
Sky News partner network NBC News has spoken with more than half a dozen people familiar with the executive orders that his team plans to enact.
One campaign official said changes are expected at a pace that is “like nothing you’ve seen in history”, to signal a dramatic break from President Joe Biden’s administration.
Mr Trump is preparing on day one to overturn specific policies put in place by Mr Biden. Among the measures, reported by sources close to the transition team, are:
• The speedy and large-scale deportations of illegal immigrants
• Ending travel reimbursement for military members seeking abortion care
• Restricting transgender service members’ access to gender-affirming care
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But much of the first day is likely to focus on stopping illegal immigration – the centrepiece of Trump’s candidacy. He is expected to sign up to five executive orders aimed at dealing with that issue alone after he is sworn in on 20 January.
“There will without question be a lot of movement quickly, likely day one, on the immigration front,” a top Trump ally said.
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“There will be a push to make a huge early show and assert himself to show his campaign promises were not hollow.”
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Donald Trump ally Matt Gaetz has withdrawn his name from consideration to be the next US attorney general.
But Mr Trump’s campaign pledges also could be difficult to implement.
Deporting people on the scale he wants will be a logistical challenge that could take years. Questions also remain about promised tax cuts.
Meanwhile, his pledge to end the war between Russia and Ukraine in just 24 hours would be near impossible.
Even so, advisers based at Mr Trump’s Mar-a-Lago resort or at nearby offices in West Palm Beach, Florida, are reportedly strategising about ending the wars in Ukraine and the Middle East.
Following his decisive victory on 5 November, the president-elect has moved swiftly to build a cabinet and senior White House team.
As of Thursday, he had selected more than 30 people for senior positions in his administration, compared with just three at a similar point in his 2016 transition.
Stephen Moore, a senior economic adviser in Mr Trump’s campaign, told NBC News: “The thing to realise is Trump is no dummy.
“He knows he’s got two to three years at most to get anything done. And then he becomes a lame duck and we start talking about [the presidential election in] 2028.”