FTX’s Founder, Sam Bankman-Fried, is set to stand trial
tomorrow (Tuesday) following the crypto exchange’s collapse and the alleged
misappropriation of billions in customer funds. The six-week trial is expected
to uncover testimonies, internal documents, and emails to clarify the scandal
surrounding FTX’s alleged theft of billions.
The most intriguing revelations are likely to come from the
prosecution’s witnesses, who were once firmly in Bankman-Fried’s inner circle.
Caroline Ellison, the former CEO of Alameda Research, a crypto hedge fund
connected to FTX, is one of the most highly-anticipated witnesses. Her unique
perspective stems from her deep involvement with both FTX and Alameda Research,
as well as her personal relationship with Bankman-Fried.
In a plea hearing in December 2022, Ellison confessed
to misleading lenders and obtaining an “unlimited line of credit”
for Alameda Research from FTX, even when it was unnecessary. Her inside
knowledge of FTX’s operations and the alleged mingling of customers’ funds is
crucial in the trial.
In addition, Nishad Singh, an early hire at Alameda
Research, held a critical position within the organization. His role in
controlling FTX’s matching engine, which facilitated the processing of buy and
sell orders, along with his knowledge of fund movements between FTX and
Alameda, makes his testimony crucial.
Gary Wang, the Co-Founder of Alameda Research and FTX,
served as the Chief Technology Officer for both companies. His long-standing
personal relationship with Bankman-Fried and his key role in the alleged
misconduct add depth to his testimony.
Sam Bankman-Fried, the Founder of FTX, who
has been in jail since earlier this month, pleaded not guilty to an updated
indictment that includes allegations of fraud and money laundering
