Sam Bankman-Fried trial Day 2: What to expect and who could testify
Jury selection expected to wrap and first witnesses could be called in fraud trial of FTX founder
Sam Bankman-Fried accused of losing $8.7B in customer money
'San Fransicko' author Michael Shellenberger says it points to greed as the crypto fraudster stands trial on 'The Bottom Line.'
The criminal fraud trial of FTX founder and former CEO Sam Bankman-Fried entered its second day on Wednesday, and the first witnesses could be called to testify by the afternoon.
Jury selection is expected to be completed by mid-morning, followed by opening statements from the prosecution and defense, both of which are expected to last around an hour each.
In this courtroom sketch, Sam Bankman-Fried sits beside his defense lawyer Christian Everdell on the first day of his fraud trial over the collapse of FTX, the bankrupt cryptocurrency exchange, at Federal Court in New York City on Tuesday. (Reuters/Jane Rosenberg / Reuters Photos)
The government plans to begin calling witnesses by Wednesday afternoon, and their key witness is Caroline Ellison, Bankman-Fried's ex-girlfriend and former top deputy who was the CEO of his hedge fund, Alameda Research, at the time of his crypto empire's collapse.
Also on the prosecution's list of potential witnesses are Bankman-Fried's father, Joseph Bankman, and brother, Gabriel Bankman-Fried. FOX Business was told either of them could face hostile questioning on the stand, given both are under suspicion for involvement with Sam Bankman-Fried's alleged criminal activity.
Joseph Bankman, father of former FTX CEO Sam Bankman-Fried, leaves after a bail hearing for his son at Manhattan Federal Court in New York City on Aug. 11, 2023. (Michael M. Santiago/Getty Images / Getty Images)
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Former Trump White House communications director Anthony Scaramucci was named as a possible witness for prosecutors, too. A source close to Scaramucci told FOX Business that as of Tuesday afternoon, he had not been called to testify and does not expect to be.
Anthony Scaramucci, founder and managing partner of SkyBridge Capital II LLC, speaks during the Bloomberg New Economy Forum in Singapore on Nov. 15, 2022. (Bryan van der Beek/Bloomberg via Getty Images / Getty Images)
Bankman-Fried was indicted on several charges in connection with the collapse of FTX, once the second-largest crypto exchange in the world, after it was hit with a flood of withdrawals following reports that the exchange had merged assets with Alameda.
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Customers lost billions as a result of the collapse, and federal prosecutors in Manhattan have accused Bankman-Fried of misleading investors and lenders and stealing billions of dollars in customer funds to buy real estate, make political contributions and make up for losses at Alameda.
Former FTX chief Sam Bankman-Fried leaves the courthouse following a bail hearing ahead of his October trial in New York City on July 26, 2023. (ANGELA WEISS/AFP via Getty Images / Getty Images)
In his ongoing current trial, Bankman-Fried is facing seven federal counts of fraud and conspiracy. It is expected to last roughly six weeks, and a second criminal trial against him is set for March, which will address separate charges including campaign finance violations.
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Bankman-Fried has acknowledged that FTX had inadequate risk management but maintains that it did not steal funds. He has pleaded not guilty to all the charges brought against him.
FOX Business' Kelly O'Grady, Daniel Hillsdon and Eleanor Terrett contributed to this report.