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.”
Image: Sam Bankman-Fried watches as his defence lawyer Mark Cohen makes his opening remarks in a court sketch
A spectacular fall from grace
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.
The Trump administration has stopped the scheduling of new visa interviews for foreign students hoping to study in the US while it prepares to expand social media vetting of applicants.
A US official said on Tuesday the suspension is intended to be temporary and does not apply to applicants who already have visa interviews scheduled.
The official spoke on the condition of anonymity to discuss an internal administration document.
A downturn in enrolment of international students could hurt university budgets in the US.
To make up for cuts in federal research funding, some colleges previously shifted to enrolling more international students, who often pay full tuition.
Now, an internal cable signed by US Secretary of State Marco Rubioand seen by the Associated Press news agency shows how new student visa interviews are being halted as the US State Department plans to issue guidance on expanded social media vetting.
The cable says that “in preparation for an expansion of required social media screening and vetting, consulate sections should not add any additional student or exchange visitor visa appointment capacity” until the guidance is issued.
It also says the halting of new visa interviews is “effective immediately”.
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Asked about the suspension at a briefing on Tuesday, State Department spokesperson Tammy Bruce said the US uses every available resource to vet people applying for visas.
“We will continue to use every tool we can to assess who it is that’s coming here, whether they are students or otherwise,” Ms Bruce said.
The move, first reported by Politico, is the latest in the White House’s crackdown on international students.
Last week, the Trump administration revoked Harvard University’s ability to enrol international students, removing the college from the programme that allows schools to sponsor foreign students for visas.
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Harvard foreign student ban blocked
This spring the Trump administration also revoked the legal status of thousands of international students already in the country, leading some to leave the US out of fear of deportation.
After many students filed successful legal challenges, the administration said it was restoring the students’ legal status.
But the government also expanded the grounds for terminating international students’ legal status going forward.
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US President Donald Trump’s previous administration stepped up scrutiny of all visa applicants, introducing reviews of their social media accounts.
The policy remained during President Joe Biden’s administration.
An extended pause in scheduling student visas could lead to delays that may disrupt college, boarding school or exchange students’ plans to enrol in summer and autumn terms.
The Trump administration has ordered embassies to stop scheduling student visa appointments as it prepares to implement strict social media vetting.
US correspondents Martha Kelner and James Matthews discuss why the administration is introducing the drastic measures and what a ban on international students could mean for the US.
Plus, Trump has threatened to pull California’s federal funding over one high school trans athlete.
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A test flight of SpaceX’s Starship rocket has failed for the third time in a row.
It began spinning out of control about 30 minutes after its launch because of fuel leaks – meaning it broke up on re-entry into the Earth’s atmosphere.
“Our chances of making it all the way down to the Indian Ocean are pretty slim,” a SpaceX commentator said during a livestream.
There had been hopes of a successful mission, as the rocket had progressed beyond the point of explosive past failures in January and March.
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March: SpaceX debris lights up sky after failed launch
But plans to release a series of mock satellites after lift-off were abandoned because its payload door failed to open fully.
The vessel had been mounted atop a Super Heavy booster that was being reused for the first time ever – and while that was meant to make a soft landing, it ended up slamming into the Gulf of Mexico.
SpaceX hopes that Starship will one day be used to ferry people and cargo to Mars, but this latest setback plunges Elon Musk’s ambitions into doubt.
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Failed launches earlier this year disrupted dozens of flights across the US – and the project was grounded for two months while an investigation took place.
Musk was due to update the world on his space exploration ambitions later, in a speech entitled “The Road to Making Life Multiplanetary” – but the event has been delayed without explanation.
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Jan: Starship explosion sparks travel chaos
Nonetheless, the world’s richest man described the latest test flight as a “big improvement”.
He also vowed to pick up the pace with future launches – and says the next three flights will take place every three to four weeks.
On X, the company added: “With a test like this, success comes from what we learn, and today’s test will help us improve Starship’s reliability.”
NASA needs SpaceX to make huge advances with Starship over the next 12 months as the US agency tries to fulfil an ambition of landing astronauts back on the moon.
Musk had been hoping for success after pledging to start focusing on his many businesses – Tesla, X and SpaceX among them – after attempting to slash government spending while in the Trump administration.
Footage posted on social media showed the billionaire watching the test flight unfold from a control centre, while wearing the T-shirt “Occupy Mars”.