Sam Bankman-Fried, the billionaire CEO of FTX exchange, was recently confronted with his own words in a criminal fraud trial. Prosecutors have been using Bankman-Fried’s own emails and conversations as evidence against him in the case, which is focusing on his company’s involvement in a fraudulent bitcoin trading scheme.
The scheme in question started in April 2018, when two of FTX’s employees, Alexander Moran and Richard Reinhart, offered a group of investors the opportunity to make a potential return of 37%. Moran and Reinhart allegedly lied to the investors about the investments being risk-free. However, the offered returns were actually much higher than what was suggested, leading to losses for some investors, and winning trades for Bankman-Fried himself.
In the trial, prosecutors showed Bankman-Fried messages taken from his own emails, which allegedly showed that he was involved, and approved of the scheme. Outside of the emails, conversations on WhatsApp and other messaging platforms were also used to work against him. Bankman-Fried was shown to have approved of the scheme, agreed to the payment plans, and even praised Moran and Reinhart’s efforts.
The prosecution argued that Bankman-Fried was well-aware of the fraudulent nature of the investments, and that he had personally benefitted from the scheme. On the other hand, Bankman-Fried’s lawyers argued that he trusted the employees responsible, and never intended to break the law.
At this point, the jury will have to decide whether or not Bankman-Fried is guilty of any criminal fraud. Whether he is found guilty or not, Bankman-Fried’s use of his own words to either convict or acquit himself is a unique case, and one that will be closely examined for years to come.