- By Natalie Sherman & Noor Nanji
- BBC Business
Prosecutors have accused former crypto boss Sam Bankman-Fried of deceit as his US fraud trial draws to a close, claiming he repeatedly lied to customers, the public and the jury.
Mr Bankman-Fried is facing charges of fraud and money laundering.
Prosecutors say he precipitated the collapse of his cryptocurrency exchange, FTX, by stealing billions of dollars from customers.
He denies the charges, claiming he was unaware of what was happening.
Prosecutor Nick Roos said such arguments were not “remotely credible”.
“This was a pyramid of deceit built by the defendant on a foundation of lies and false promises,” he told the jury that will decide his fate.
“He took the money, he knew it was wrong and he did it anyway because he thought he was smarter and better… He thought he could talk his way out of it,” he added. “That ends with you.”
Prosecutors for the US government have argued that Mr Bankman-Fried directed special systems to be set up, such as a massive line of credit, that allowed his crypto hedge fund Alameda Research to take billions in FTX customer deposits.
They say he then spent the money to repay Alameda lenders, buy property, make investments and political donations.
When FTX collapsed last year, $8bn (£6.6bn) in customer funds was missing, owed by Alameda.
“There is just one person who had the motive” for such activity, Mr Roos said.
“This is not about complicated issues of crypto urgency, it’s not about hedging, it’s not about technical jargon,” Mr Roos said. “It’s about deception, it’s about stealing, it’s about greed.”
He challenged Mr Bankman-Fried’s testimony, saying he had become a “different person” depending on whether he faced friendly questions from his own lawyers or cross-examination by the government.
Lawyers for the two sides are expected to spend much of Wednesday summing up their cases for the jury before it starts deliberating.
Mr Bankman-Fried faces decades in prison if convicted.
The 31-year-old is a former billionaire and was arrested last year after the collapse of his firm, FTX.
The downfall left many customers unable to recover their funds.
Before the collapse of his companies, he was known for socialising with celebrities and appearing frequently in Washington DC and in the media with a head of wild curls to discuss the sector.
The rapid growth of his firm and his deal-making last year, when a market downturn hit other firms, earned him the moniker the “Crypto King”.
During the trial that began early in October, the entrepreneur admitted he had made “mistakes” in managing his business empire, but said that he never committed fraud.
He depicted himself as overwhelmed by work and claimed he only became aware of the issues facing Alameda when it was too late.
He said the problems at the company arose because his instructions were ignored by employees, including his former girlfriend.
