Bankman-Fried's lawyer defends him as a 'math nerd who didn't drink' as fraud trial begins

The FTX founder's lawyer portrayed him as a naive victim who simply didn't pay attention to risk management. Photo: Seth Wenig/AP

Sam Bankman's lawyers — Fried defended him as a «math nerd who didn't drink or party» when the FTX founder began his fraud trial in New York.

< p>The entrepreneur was portrayed as a naive victim who simply did not pay attention to risk management. amid the rapid expansion of his cryptocurrency startup.

During opening arguments on Wednesday, his lawyer, Mark Cohen, criticized prosecutors' efforts to portray Mr. Bankman-Fried as a «cartoonish» villain.

He said to the court: “Sam had no intention of deceiving anyone. There was no theft.”

But the US government has indicted the former billionaire on seven counts of conspiracy, fraud and money laundering for FTX, which was once the world's second-largest digital coin exchange before it went bankrupt last year.

He was accused of misappropriating more than $10 billion (£8 billion) of FTX client funds to fund risky bets at affiliated cryptocurrency hedge fund Alameda, leaving an $8 billion black hole in his accounts.

In his opening statement on Wednesday, prosecutor Thein Ren said: “He used his company FTX to commit fraud on a massive scale, and the money he spent building his empire was money he stole from FTX clients.

The prosecutor added: “He had wealth, he had power, he had influence, but it was all built on lies.”

Prosecutor Thein Ren said Mr Bankman-Fried used his company “to commit fraud on a massive scale”. Photo: JANE ROSENBERG/REUTERS

Mr Bankman-Fried has pleaded not guilty and denies wrongdoing. misdemeanor.

His fate will be decided by a 12-person jury selected by the court Wednesday, which includes a 47-year-old high school librarian and a 68-year-old retired investment banker who attended Stanford Business School.

His parents, Joseph Bankman and Barbara Fried, made their first appearance at the federal courthouse in Manhattan on Wednesday.

It is likely that Mr. Bankman-Fried's parents are professors at Stanford Law School in California. , will be called to the witness stand to testify.

Former colleagues, roommates and Mr. Bankman-Fried's ex-girlfriend, Caroline Ellison, are also expected to testify or provide evidence during the trial, which will last about six weeks.

Mr. Bankman-Fried said Mr. Bankman-Fried Fried was suing his insurer for refusing to cover his legal fees.

The 31-year-old said Chicago-based insurer CNA «unjustifiably failed to pay on-time payment» on a policy designed to cover up to £5 million in defense costs.

The FTX founder has already exceeded $10 million in insurance coverage provided by London-based insurance company Beazley and Australia's QBE, the Financial Times reports.

This alleged violation According to the legal complaint, CNA's insurance policy caused «substantial and irreparable harm.»

This included «impairing» Mr. Bankman-Fried's defense against numerous criminal and civil claims against him after the collapse of FTX. last year.

The former billionaire demanded that CNA pay his defense costs as well as more than $75,000 in damages, according to court documents.

CNA refused comments.