Here are the emails, texts and photos that could put Sam Bankman-Fried in prison for life


Government exhibit in the case towards former FTX CEO Sam Bankman-Fried.

Source: SDNY

Over the previous month, legal professionals in the criminal trial of Sam Bankman-Fried have introduced shut to twenty witnesses to the stand and offered a whole bunch of reveals to the 12 jurors who will determine the destiny of the boy as soon as deemed the king of crypto.

The jury, which started deliberations on Thursday afternoon, has a mountain of proof to contemplate in figuring out whether or not the 31-year-old founding father of FTX is responsible of seven legal counts, which embrace wire fraud, securities fraud and cash laundering. Bankman-Fried, who has pleaded not responsible to all fees, faces greater than 100 years in prison if convicted.

While prosecutors had been in a position to current the jury with testimony from members of the defendant’s interior circle, Bankman-Fried’s case rests largely on his personal look on the witness stand.

“From starting to finish, Sam Bankman-Fried’s workforce did not give you an actual recreation changer,” stated Renato Mariotti, a former prosecutor in the U.S. Justice Department’s Securities and Commodities Fraud Section and now a trial accomplice in Chicago with Bryan Cave Leighton Paisner. “His fraud was brazen and troublesome to clarify away, and he lacked the self-discipline to maintain his mouth shut even after it was obvious that he was underneath legal investigation.”

In addition to oral testimony, the authorities introduced in different proof to attempt and show its case and to color an image of an government who obtained an excessive amount of, too quick, and spent nicely in extra of his means. These reveals embrace encrypted textual content messages, emails, promissory notes, Google docs, spreadsheets, leaked movies and photos displaying Bankman-Fried’s lavish life-style, together with of his $35 million condo in the Bahamas.

Lawyers for the U.S. Attorney’s workplace entered into proof a collection of photos that includes the $35 million penthouse the place Sam Bankman-Fried and his fellow co-workers resided.

Source: SDNY

$1.1 billion in promissory notes

For weeks, prosecutors have proven the jury how billions of {dollars} in FTX buyer cash went to political donations, enterprise investments and luxurious actual property. They traced the a whole bunch of thousands and thousands of {dollars} that went from firm coffers to Bankman-Fried’s private accounts.

The prosecution offered a collection of comparatively easy, two-page promissory notes. According to agreements signed by the defendant and Caroline Ellison, who ran hedge fund Alameda Research, Bankman-Fried borrowed extra $1.1 billion in the 12 months earlier than his corporations — FTX and Alameda — filed for bankruptcy.

Bankman-Fried admitted on the stand that there have been seemingly extra loans that weren’t correctly documented, so the borrowing most likely exceeded what was offered into proof.

Government exhibit in the case towards former FTX CEO Sam Bankman-Fried.

Source: SDNY

Government exhibit in the case towards former FTX CEO Sam Bankman-Fried.

Source: SDNY

Government exhibit in the case towards former FTX CEO Sam Bankman-Fried.

Source: SDNY

Secret emails

Much of the authorities’s case towards Bankman-Fried hinges on the testimony, emails, and textual content messages from former prime lieutenants who turned towards him late final 12 months.

In one e-mail, shared by prosecutors, Bankman-Fried promised preferential remedy to Bahamian clients on the FTX cryptocurrency change.

In a message to Ryan Pinder, the lawyer basic and minister of authorized affairs for the Bahamas, Bankman-Fried claimed FTX had “segregated funds for all Bahamian clients” and could be “more than pleased to open up withdrawals for all Bahamian clients on FTX, so that they will, tomorrow, absolutely withdraw all of their property, making them absolutely entire.”

The e-mail was despatched Nov. 9, at some point after FTX had halted withdrawals and two days earlier than it filed for chapter. FTX customers had collectively pulled $5 billion off the platform in what amounted to a financial institution run.

Government exhibit in the case towards former FTX CEO Sam Bankman-Fried.

Source: SDNY

Two different separate e-mail chains present that Bankman-Fried critically mischaracterized his function at Alameda Research, in accordance with prosecutors.

Government exhibit in the case towards former FTX CEO Sam Bankman-Fried.

Source: SDNY

In a message to Rob Creamer, the CEO of Geneva Trading and chairman of FIA Principal Traders Group, Bankman-Fried wrote “Alameda has a completely separate workforce” that he did not handle.

Government exhibit in the case towards former FTX CEO Sam Bankman-Fried.

Source: SDNY

Bankman-Fried wrote in an e-mail to a Wall Street Journal reporter that Alameda’s account entry “is the identical as others” and that its merchants do not have “any particular entry to consumer data, marketdata, or buying and selling.” According to the authorities, these claims have been debunked by witness testimony and inside firm paperwork and textual content messages.

Alameda’s preferential remedy is spelled out in the two reveals listed beneath. They present Alameda’s “permit unfavorable” function, and a line of credit score on FTX that was $65 billion in comparison with $150 million or much less for all different clients on the change.

Government exhibit in the case towards former FTX CEO Sam Bankman-Fried.

Source: SDNY

Government exhibit in the case towards former FTX CEO Sam Bankman-Fried.

Source: SDNY

Google Docs

Government exhibit in the case towards former FTX CEO Sam Bankman-Fried.

Source: SDNY

Government exhibit in the case towards former FTX CEO Sam Bankman-Fried.

Source: SDNY

A giant a part of the authorities’s case revolves round the methods Bankman-Fried allegedly directed spending of cash at Alameda lengthy after he was not formally working the hedge fund.

In a message to FTX’s then basic counsel Can Sun, Bankman-Fried pushed to get a $250 million switch to hedge fund Modulo Capital expedited in full inside eight hours. Sun later testified about the transaction underneath a non-prosecution settlement with the authorities.

Government exhibit in the case towards former FTX CEO Sam Bankman-Fried.

Source: SDNY

Getting chummy with celebrities

Bankman-Fried’s chummy ties with celebrities and his enthusiasm for spending a whole bunch of thousands and thousands of {dollars} on endorsement offers had been areas of focus for the authorities.

Prosecutors confirmed the courtroom a spreadsheet of investments made in 2021. They included $205 million for FTX’s naming rights to Miami’s NBA area, $150 million to Major League Baseball, $28.5 million to NBA star Stephen Curry, $50 million to quarterback Tom Brady and his then spouse Giselle Bundchen, and $10 million to comic Larry David. The offers on the spreadsheet amounted to a complete of $1.13 billion.

Government exhibit in the case towards former FTX CEO Sam Bankman-Fried.

Source: SDNY

Nishad Singh, who was FTX’s director of engineering, testified that the $300 million outlay on funding agency K5 was amongst the most troubling. He stated Bankman-Fried despatched him a time period sheet detailing a whole bunch of thousands and thousands of {dollars} of bonuses to house owners Michael Kives and Bryan Baum. That adopted a K5 dinner Bankman-Fried attended alongside Hillary Clinton, Katy Perry, Orlando Bloom, Leonardo DiCaprio, and Kris and Kylie Jenner.

Government exhibit in the case towards former FTX CEO Sam Bankman-Fried.

Source: SDNY

Singh stated he informed Bankman-Fried he was very involved and that the K5 funding was “worth extractive.” He additionally stated he requested Bankman-Fried if the funding was made along with his cash or FTX’s. The spreadsheet confirmed it got here from Alameda.

In a movement to dismiss a grievance in chapter courtroom towards K5, the agency’s legal professionals stated the “plaintiffs try to make Kives and Baum complicit in SBF’s wrongdoing has no foundation in truth.”

Government exhibit in the case towards former FTX CEO Sam Bankman-Fried.

Source: SDNY

Leaked audio

In an all-hands assembly on the night of Nov. 9, 2022, Alameda Research staff gathered in a circle to hearken to Ellison, the CEO, who was sitting on a beanbag. She informed staffers about Alameda’s borrowing from FTX, and stated the change now had a “shortfall of person funds.”

Christian Drappi, a former software program engineer at Alameda, was one in all the 15 individuals in attendance at the assembly in the Hong Kong workplace. Ten others joined by way of video from the Bahamas.

In his testimony, Drappi described Ellison’s demeanor that evening as “sunken.” He stated she was “kinda slouching” and “didn’t show assured physique language.”

In the recording of the Ellison assembly that was performed for the jury, Drappi will be heard asking about FTX’s plan to pay again clients. Ellison stated the firm would elevate cash to fill the gap. Drappi requested Ellison if Alameda’s loans had been collateralized by the spot margin group. She stated they weren’t, and Drappi stated, “That appears fairly dangerous.”

Caroline Ellison is questioned throughout Sam Bankman-Fried’s fraud trial over the collapse of FTX, the bankrupt cryptocurrency change, at Federal Court in New York City, U.S., October 11, 2023 in this courtroom sketch. 

Jane Rosenberg | Reuters

Encrypted messages

Of the a whole bunch of things entered into proof, a bank of messages on encrypted app Signal paint maybe the clearest image of Bankman-Fried’s alleged crimes.

One thread, dubbed “small group chat,” included Ellison, Bankman-Fried, and Joe Bankman, the defendant’s father, who suggested the firm on tax-related points and different issues. Also in the group had been Ramnik Arora, a former product lead for FTX; Ryne Miller, who was the firm’s basic counsel; Constance Wang, ex-operating chief; and former FTX government Ryan Salame.

Prosecutors are relying closely on textual content messages despatched amongst FTX and Alameda Research executives in the case towards Sam Bankman-Fried.

Source: SDNY

Early in the morning on Nov. 7, the defendant put forth some “potential todos,” together with halting withdrawals, sending a “assured tweet thread” and reaching out to companies resembling Silverlake, Sequoia, and Apollo as they “get up over the subsequent few hours” to attempt to shore up money.

Later that morning, Salame linked to a tweet from an nameless crypto dealer saying, “cant wait for my FTX airdrop for not transferring any of my funds.”

Bankman-Fried chimed in with totally different concepts about the best way to make the most of the put up in an obvious effort to offer false hope to FTX clients that they’d obtain free tokens in the event that they saved their funds on the platform.

Prosecutors are relying closely on textual content messages despatched amongst FTX and Alameda Research executives in the case towards Sam Bankman-Fried.

Source: SDNY

The subsequent day, Nov. 8, Ellison appealed to the group for assistance on optics and public messaging.

She wrote, “a number of individuals internally asking me whether or not they need to proceed to make statements to exterior events like ‘Alameda is solvent.’ ought to i recommend they stall as a substitute? simply stall on responding to their messages? or what?”

That’s the identical day FTX issued a pause on all buyer withdrawals. The worth of FTT, FTX’s native token, plummeted by over 75%. Out of choices, Bankman-Fried turned to Binance CEO Changpeng Zhao, who introduced he’d signed a nonbinding letter of intent to accumulate FTX.

Prosecutors are relying closely on textual content messages despatched amongst FTX and Alameda Research executives in the case towards Sam Bankman-Fried.

Source: SDNY

On Nov. 9, Ellison once more regarded to the group for steering about the best way to deal with the now infamous all-hands meeting of Alameda’s roughly 30 employees.

She proposed saying, “Alameda might be going to wind down” and that there was “no stress” to remain however assist with “stuff like ensuring our lenders receives a commission” could be “tremendous appreciated.”

Bankman-Fried instructed she say one thing about there “being a way forward for some kind for those that are excited.”

Prosecutors are relying closely on textual content messages despatched amongst FTX and Alameda Research executives in the case towards Sam Bankman-Fried.

Source: SDNY

The writer’s go to

Author Michael Lewis, whose guide profiling Bankman-Fried was printed the day the trial started, was additionally the topic of some Signal exchanges.

In a chat on Jan. 5, 2022, Bankman-Fried alerted a bunch that included Ellison and Singh that Lewis could be coming to the Bahamas the subsequent month to do reporting.

Ellison stated her “instincts are extra towards underneath the radar.” Bankman-Fried, a infamous press hound, responded, “identical, besides precisely the reverse.”

As the grand scheme collapsed months later, Ellison expressed quite a lot of reduction in a personal chat with Bankman-Fried.

Ellison wrote, “that is the finest temper I’ve been in in like a 12 months tbh” (“tbh” is brief for “to be trustworthy”).

In three consecutive messages, Bankman-Fried responded, “wow,” “uh,” “congrats?”

Ellison wrote, “I believe I simply had an growing dread of this present day that was weighing on me for a very long time, and now that it is really taking place, it simply feels nice to get it over with a technique or one other.”

Prosecutors are relying closely on textual content messages despatched amongst FTX and Alameda Research executives in the case towards Sam Bankman-Fried.

Source: SDNY



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