The trial of former cryptocurrency exchange FTX and its founder Sam Bankman-Fried begins today (October 3) in a New York City courtroom.
Bankman-Fried and other former executives of the now bankrupt crypto exchange stand trial for allegedly orchestrating one of the biggest financial frauds in U.S. history.
FTX collapsed last November in a bankruptcy filing that claimed $8 billion U.S. in losses and listed more than one million creditors.
Bankman-Fried faces seven criminal counts related to the collapse of the crypto exchange, including wire fraud, securities fraud, and money laundering.
U.S. regulators allege that Bankman-Fried misused billions of dollars worth of customer money for personal purchases, including buying more than $200 million U.S. of real estate in the Bahamas where FTX was based.
Prosecutors in New York also allege that Bankman-Fried defrauded FTX investors by covering up his scheme to divert their money and use it for his personal gain.
A conviction on all counts could land Bankman-Fried more than 100 years in prison. Bankman-Fried, who is the son of two Stanford legal professors, has pleaded not guilty to all charges.
The trial is expected to attract media attention from around the world, with some commentators claiming that cryptocurrency itself is on trial in the case against Bankman-Fried and FTX.
The criminal trial is expected to last up to six weeks.
