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.
Please use Chrome browser for a more accessible video player
1:14
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.”
More on Ftx
Related Topics:
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.
A federal appeals court has ruled that Donald Trump’s sweeping international tariffs can remain in place for now, a day after three judges ruled the president exceeded his authority.
The Court of Appeals for the Federal Circuit (CAFC) has allowed the president to temporarily continue collecting tariffsunder emergency legislation while it considers the government’s appeal.
It comes after the Court of International Trade blocked the additional taxes on foreign-made goods after its three-judge panel ruled that the Constitution gives Congress the power to levy taxes and tariffs – not the president.
The judges also ruled Mr Trump exceeded his authority by invoking the 1977 International Emergency Economic Powers Act.
The CAFC said the lower trade court and the Trump administration must respond by 5 June and 9 June, respectively.
Trump calls trade court ‘backroom hustlers’
Posting on Truth Social, Mr Trump said the trade court’s ruling was a “horrible, Country threatening decision,” and said he hopes the Supreme Court would reverse it “QUICKLY and DECISIVELY”.
After calling into question the appointment of the three judges, and suggesting the ruling was based on “purely a hatred of ‘TRUMP’,” he added: “Backroom ‘hustlers’ must not be allowed to destroy our Nation!
Please use Chrome browser for a more accessible video player
1:14
Trump asked about ‘taco trade’
“The horrific decision stated that I would have to get the approval of Congress for these Tariffs. In other words, hundreds of politicians would sit around D.C. for weeks, and even months, trying to come to a conclusion as to what to charge other Countries that are treating us unfairly.
“If allowed to stand, this would completely destroy Presidential Power — The Presidency would never be the same!”
Mr Trump argued he invoked the decades-old law to collect international tariffs because it was a “national emergency”.
Please use Chrome browser for a more accessible video player
3:16
From April: ‘This is Liberation Day’
Tariffs ‘direct threat’ to business – Schwab
The trade court ruling marked the latest legal challenge to the tariffs, and related to a case brought on behalf of five small businesses that import goods from other countries.
Jeffrey Schwab, senior counsel for the Liberty Justice Center – a nonprofit representing the five firms – said the appeal court would ultimately agree that the tariffs posed “a direct threat to the very survival of these businesses”.
US treasury secretary Scott Bessent also told Fox News on Thursday that the initial ruling had not interfered with trade deal negotiations with partners.
He said that countries “are coming to us in good faith” and “we’ve seen no change in their attitude in the past 48 hours,” before saying he would meet with a Japanese delegation in Washington on Friday.
Harvard graduates have a lot to say. In a sign of the times, now isn’t the time to say it.
That much was clear when I sought student opinion at the gates of America’s oldest university. There is a reluctance to talk about Trump.
“He needs to come back to this country,” said a Harvard dad of his son, politely declining an interview on the youngster’s behalf.
The young man, British, falls into the category of international student – a vulnerable species, currently, in America’s elite university system.
For him, saying the ‘wrong’ thing carries the risk of an exclusion order to go with his graduation certificate. Dad knows best.
It is the modern reality at the gates of Harvard – this iconic seat of learning and crucible of free speech and ideas isn’t as free as it was. For now, at least.
It’s fair to say Harvard had other things on its mind this week, with Thursday’s ‘commencement’ day and graduation parades winding their route through surrounding streets in a ‘town and gown’ spectacle.
There were bagpipes and brass bands to lead students in their crowning moment. It was an emotional thank you and goodbye to Harvard, with a celebration soundtrack of music and ‘mwah’.
And yet, there was a political undercurrent. There has to be, when a US institution is at war with its president.
Some students wore a white flower on their lapel as a symbol of solidarity with Harvard’s international students.
Image: Harvard president Alan Garber said graduates came from ‘around the world, just as it should be’
In giving his speech at the podium, Harvard president Alan Garber was given a standing ovation when he noted that graduates hail from “around the world, just as it should be”.
As graduates and families gathered in Harvard Yard, the university’s defiance against Trump was playing out simultaneously in court, where the latest hearing took place on government efforts to stop the enrolment of foreign students.
Image: Donald Trump is ‘trying to crush us,’ Leo Gerden tells Sky News
Leo Gerden, a 22 year-old student from Sweden, was graduating in economics and government. We chatted while he stiffened himself with a Starbucks for the celebrations ahead.
What were his thoughts, as someone fitting the profile picked on by the government of his host country?
“I feel like the entire Harvard is under attack, because without its international students, Harvard is not Harvard anymore,” he said.
“He’s trying to crush us, but we have shown over the last couple of weeks that he won’t do that easily. The uncertainty itself is going to cause a lot of harm.
“People are definitely reconsidering their plans right now, whether it was coming to America, going to any university, because they might be next on Trump’s target list.”
Follow The World
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
A former employee of Sean “Diddy” Combs broke down in tears as she described being sexually assaulted by the hip-hop star on several occasions – telling the court the alleged abuse was “the most traumatising, worst thing that’s ever happened to me”.
Image: Combs’s motherJanice Combs has been supporting him in court every day. Pic: Reuters
Mia told the court she once woke to find Combs on top of her and that he forced her to have sex against her will. Another time, he forced her to perform oral sex, she alleged.
He also once threw a bucket of ice on her head and slammed her arm into a door on another occasion, she said.
The court heard Mia had never told anyone about the alleged sexual assaults by Combs until she spoke to government investigators for this case.
“I was going to die with this,” she said, becoming tearful on the stand. “I didn’t want anyone to know ever.”
Telling the court she could not say “no” to her former boss, she said: “I knew his power. And his control. I didn’t want to lose everything that I worked so hard for.”
She also said she feared being attacked and was “always” worried about being physically hurt by Combs. “I didn’t want to die or get hurt.”
Mia said she felt “desperate”, “terrified and trapped” and described the alleged sexual assaults as “the most shameful thing of my life”, and “the most traumatising, worst thing that’s ever happened to me”.
Asked why she is speaking out now, she told the court: “Because I have to tell the truth.”
Image: Marc Agnifilo, one of Diddy’s defence lawyers, pictured outside court. Pic: Reuters/ Eduardo Munoz
‘Chaotic and toxic’
Mia, faltering at times, said working for Combs came with extreme highs and lows.
Sometimes he would offer advice and act like her “protector”, she said. Other times, he would “humiliate” her and berate her for small mistakes, and work her so hard she had little sleep, she said.
“It was chaotic. It was toxic,” she told the court.
Combs’s employees were always on edge because his mood could “change in a split second”, causing everything to go from “happy to chaotic”, she said.
Mia told how she was barely at home once she started working for Combs. Like other employees, she often slept at his properties in LA, Miami and New York.
She told the court she was not allowed to leave without his permission and was not allowed lock her door, even though it seemed as if other members of the predominantly male security staff were able to do so.
“This is my house. No one locks the doors,” Combs allegedly said to her.
On one occasion, Mia said she worked without sleeping for five days, with prescription drugs getting her through it. It was only when she had a physical breakdown that Combs allowed her to sleep, jurors were told.
Mia’s testimony echoed that of prior prosecution witnesses, including several of Combs’s other former employees, as well as Cassie.
Image: King Combs and Quincy Brown, two of Combs’s sons, were in court for today’s session. Pic: Reuters/ Eduardo Munoz
Cassie, an R’n’B singer and model whose legal name is Casandra Ventura, spoke for four days during the first week of the trial.
She told jurors her ex-partner subjected her to hundreds of “freak offs” – drug-fuelled marathons in which she said she engaged in sex acts with male sex workers while he watched and filmed them.
Mia is the second of three women testifying about alleged sexual abuse by Combs. The third woman, using the pseudonym “Jane”, is also expected to testify about participating in freak offs.
Combs has pleaded not guilty to charges of sex trafficking, racketeering conspiracy and transportation to engage in prostitution.
During their opening statement, his lawyers conceded he could be violent at times, but said that did not make him a sex trafficker or racketeering leader. Combs denies using threats or his music industry clout to commit or cover up abuse.
What did Mia say about Cassie?
Image: Cassie, who was heavily pregnant when she testified, has now given birth to her third child. Pic: Reuters/ Jane Rosenberg
In the first part of her testimony, Mia told the court she saw Combs beating Cassie on several occasions and that she sustained injuries, including black eyes, other bruises, and fat lips.
The two became friends, she said, and are still friends today.
Mia described a party at Prince’s house that she and Cassie “snuck out” to, saying Prince’s security had to intervene when Combs turned up and started to attack her.
She also described a trip to a private island in Turks and Caicos, in the Caribbean, saying she remembers Cassie being “terrified” as Combs banged on her door “screaming”.
On another occasion during that trip, they used paddle boards to go out to sea to get away from him, she said – but the weather changed and the sky turned dark.
“I was trying to weigh if it was scarier to face Mother Nature or go back to Puff,” Mia said, using the name she knew him by. “We eventually went back to Puff.”
Combs was also abusive to Cassie at the Cannes Film Festival in 2012, the court was told. Mia alleged she saw him digging his nails into her as they watched a film.
Mia’s testimony will continue when the trial resumes on Friday.