As the court hearing for the Sam Bankman-Fried trial begins, the opening comments and key issues are. As the problem starts, a Bloomberg piece highlights critical takeaways from Sam Bankman-Fried’s legal situation.
In what Judge Lewis Kaplan calls “electric quarantine,” The jurors have been asked not to talk to anyone on the news or the internet about the case as the Lower Manhattan Court decides who will sit on the Jury. Sam Bankman-Fried (SBF) sits in court only flanked by his legal representatives. Her parents were absent, neat-shaven, and in a suit, contrary to his usual casual wear and curly hair.
The trial for Sam Bankman-Fried starts.
As the court hearing for the Sam Bankman-Fried trial begins. The US Attorney’s office in Manhattan. Which represents the prosecution and the defendant (SBF). Jointly chose a panel of 12 jurors—and six alternates to narrow down from 50 before today’s session.
Prosecutor’s office opening statements
Sam Bankman-Fried is the target of the prosecution team, which makes the following salient points:
SBF lied to consumers about the security of their cash on purpose and stole billions of dollars from thousands of victims.
According to one of the prosecutors. Assistant US Attorney Nathan Rehn. SBF allegedly stole money from the company at will to support his opulent lifestyle. Including buying prime real estate and hanging out with celebrities. These have given him “wealth, power, and influence.”
The prosecution reaffirmed that they had a ton of concrete evidence to back up their assertions, including the testimony of three members of SBF’s former inner circle: Nishad Singh, Caroline Ellison, and Gary Wang, formerly the director of engineering and co-CEO of Alameda Research.
Rebuttal from the defendant’s desk by SBF attorneys
Mark Cohen of the New York law firm Cohen & Gresser presents Bankman-Fried.
According to Cohen, SBF experienced a “perfect storm” that grew worse once lenders started retracting loans to Alameda during the severe decline in the cryptocurrency market throughout 2022.
Regarding this point of contention, Cohen supported his position by stating that SBF’s business methods were “reasonable” in light of the situation.
Notwithstanding his position, Cohen admitted the questionable relationship between FTX and its sibling hedge fund Alameda. Cohen disclosed that a computer code was in place to permit Alameda to remove FTX client monies at will, contrary to earlier claims by SBF and Ellison that the firms operated separately.
It is important to note that SBF maintains his “NOT GUILTY” posture and reserves the right to argue that his risk management was inadequate as a defence.
FAQs on cryptocurrency metrics
What is supply in circulation?
Mining, staking, or other processes can only create these assets in a finite quantity. The algorithm of the underlying blockchain technology defines this. The circulating amount of Bitcoin is 19,445,656 BTC, which has been mined in total from its beginning. On the other hand, by burning tokens or accidentally moving money to addresses on unrelated blockchains, for example, the circulating supply can also be reduced.
How do you define market capitalization?
Market capitalization is calculated by dividing an asset’s current market value by its circulating supply. Due to the more than 19 million BTC in circulation and the price of over $29,600 at the start of August 2023, the market capitalization of Bitcoin is above $570 billion.
How much trade volume is there?
The trading volume is the total number of tokens for a specific asset bought, sold, transferred, or otherwise traded between buyers and sellers within established trading hours, such as a whole 24-hour period. This figure combines all volumes on centralized and decentralized exchanges to gauge market sentiment. When transaction volume increases, it can sometimes be interpreted as a rise in demand for a particular asset as more individuals buy and sell cryptocurrencies.
The funding rate is what.
Funding rates are a notion to incentivize traders to take positions and ensure that perpetual contract prices correspond to spot markets. It outlines a system exchanges use to guarantee that periodic payments and future index prices will always converge. The perpetual contract costs more than the marked price when the financing rate is favorable. This implies that bullish traders who have opened long positions compensate bearish traders who have opened short ones. A negative funding rate, on the other hand, indicates that perpetual prices are below the mark price and that traders with short positions must pay dealers with long holdings.