Generation Z has lower incomes and lives in debt Generation Z has lower incomes and lives in debt

The case, in which more than $8 billion of FTX customers' money disappeared and the former CEO allegedly defrauded FTX traders by covering it up, continues to be heard in Manhattan federal court in New York.

After 12 days of prosecution testimony, Bankman-Fried's lawyers began their defense today, while the testimony of two defense witnesses was taken.

Judge Lewis Kaplan sent the jurors home after a lunch break.

Bankman-Fried testified that he used encrypted messaging platforms such as "Slack" and "Signal" but believed they were in compliance with FTX's policies drafted by lawyers.

Prosecutors had alleged that Bankman-Fried encouraged employees to use such platforms to cover their tracks.

Bankman-Fried also said he believed Alameda was allowed to borrow from FTX "in many instances" based on the company's terms of service.

Bankman-Fried said that lawyers were involved in important decisions at FTX and that loans were structured by lawyers.

Bankman-Fried, who was also cross-examined by prosecutors, responded that he "did not recall" whether he had discussed Alameda's spending of FTX client money with lawyers.

FORMER COLLEAGUES COOPERATED WITH PROSECUTORS

The cryptocurrency exchange FTX went bankrupt in November 2022, and it was announced that the company's CEO Sam Bankman-Fried had resigned.

Bankman-Fried was detained in the Bahamas in December following a criminal complaint by the US. Bankman-Fried, who was delivered to the US on December 21, 2022, was ordered to be released on bail of 250 million dollars until the trial.

Bankman-Fried denied the "fraud" charges against him, claiming that he made mistakes but never intended to steal funds.

Bankman-Fried's bail was revoked in August for trying to influence witnesses, and the former CEO was sent to a prison in Brooklyn.

Jury selection began on October 3 in the first of the criminal cases against the former CEO. Caroline Ellison, former Chief Executive of Alameda Research, a subsidiary of FTX, Nishad Singh, a former FTX executive, and Gary Wang, co-founder of the crypto exchange, who testified in the case, pleaded guilty to fraud charges.

These witnesses, who cooperated with prosecutors, pointed to Bankman-Fried as the person who made decisions involving "misappropriation of customer funds".

In his defense, Bankman-Fried's lawyers had asked that the former CEO be given access to the full dose of medication he needed to treat his "Attention Deficit Hyperactivity Disorder".

The lawyers also said that three of Bankman-Fried's former colleagues, who had pleaded guilty and agreed to cooperate with prosecutors, had tailored their testimony to incriminate Bankman-Fried in the hope of receiving lenient sentences.

SECOND TRIAL SCHEDULED FOR NEXT YEAR

The trial, in which the former CEO faces 7 charges including wire fraud, securities fraud and money laundering, is expected to last around 6 weeks.

A second criminal trial to address additional charges brought after Bankman-Fried was extradited to the US from FTX's headquarters in the Bahamas is scheduled for March 2024.