Bankman-Fried trial: Crypto was not for everyone, says FTX founder's lawyer

FTX founder Sam Bankman-Fried's lawyer Mark Cohen said on Wednesday (Oct 4) that crypto was not for everyone and acknowledged that his client was in a risky business. In his opening statement at Bankman-Fried's trial, Cohen said, "You will learn that crypto was not for everyone. On the one hand, it was new and exciting."

"But on the other hand, many factors that nobody controlled could make crypto go up and down in value. So too crypto companies themselves could rise and fall very quickly," he added.

A car race ad contradicts lawyer's remarks

Add WION as a Preferred Source

However, FTX asserted the opposite in an online post about a car race it sponsored in Miami Beach, six months before the cryptocurrency exchange's collapse in November last year. "Crypto is for everyone, as should be motorsports," FTX posted on May 13, 2022, on its official account on Twitter, now called X. A video alongside the post showed racing cars, bartenders pouring cocktails, and retired basketball star Shaquille O'Neal giving high-fives.

During the trial, prosecutors played for the jury FTX video advertisements in which a narrator said, "We're inviting everyone in," as well as spots featuring NFL star Tom Brady and comedian Larry David.

Cohen told the jury that it was not a crime to "try to get Tom Brady to come on ads for your company."

The bankrupt cryptocurrency exchange's promoters, including O'Neal, Brady and David had been sued over the claims that they had engaged in deceptive practices. The celebrities have said the lawsuit should be dismissed, arguing they did not cause FTX investors' losses.

Bankman-Fried, 31, pleaded not guilty to two counts of fraud and five counts of conspiracy over the collapse of FTX. On Wednesday, prosecutors said that the disgraced crypto star stole $10 billion in customer funds to buy luxury real estate, donate to US political candidates, and plug losses at his hedge fund.

Prosecutor Thane Rehn said FTX's commercials promoted the exchange as trustworthy - even while Bankman-Fried was allegedly stealing deposits. Cohen responded by saying that his client never intended to steal funds.

WATCH WION LIVE HERE

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.