Top FTX Victim Points at Influencers' Roles as SBF Faces Trial

<p dir="ltr">“FTX creditors,” appealed Sunil Kavuri on Twitter days after the ongoing trial of Sam Bankman-Fried started, adding: “never forget all the CT influencers that fawned over SBF, posted their FTX ref links, posted their fake screenshot P&amp;Ls on FTX and never talked about FTX bankruptcy/creditors again.”</p><p dir="ltr">Kavuri lost about $2.1 million to FTX and has now become one of the vocal champions of FTX creditors. He describes himself as an FTX creditor activist for his newfound role and is now making rounds of media outlets to share his thoughts on the trial.</p><blockquote><p lang="zxx" dir="ltr"><a href="https://t.co/XNbcsr1KCk">https://t.co/XNbcsr1KCk</a></p>— Sunil (FTX Creditor Champion) (@sunil_trades) <a href="https://twitter.com/sunil_trades/status/1710963858758586454?ref_src=twsrc%5Etfw">October 8, 2023</a></blockquote><p dir="ltr">"Sam Bankman-Fried has literally destroyed so many people's lives," said Kavuri, who is now receiving dozens of queries every day from fellow FTX creditors, told BBC. "One person in Turkey was left with only $600 (£490) in their bank account after losing everything, and one in Korea was hospitalized with panic attacks."</p><blockquote><p lang="en" dir="ltr">Was a pleasure to join <a href="https://twitter.com/AJEnglish?ref_src=twsrc%5Etfw">@AJEnglish</a> today to provide my thoughts as the SBF trial commences <a href="https://t.co/E1rsOiOaY7">pic.twitter.com/E1rsOiOaY7</a></p>— Sunil (FTX Creditor Champion) (@sunil_trades) <a href="https://twitter.com/sunil_trades/status/1709210840656724131?ref_src=twsrc%5Etfw">October 3, 2023</a></blockquote><p dir="ltr">A High-Profile Trial</p><p dir="ltr">The criminal trial of SBF started last week. The infamous figure, who founded and headed the crypto exchange FTX and was once seen as the 'messiah' of the industry, attended the court with a new haircut and in a suit and tie, unusual from his signature shorts and t-shirt look.</p><blockquote><p lang="en" dir="ltr">After opening statements, two people, a former FTX customer and a close friend of Bankman-Fried’s since college, testified in court today.<a href="https://t.co/5u3D9OJu9g">https://t.co/5u3D9OJu9g</a></p>— Laura Shin (@laurashin) <a href="https://twitter.com/laurashin/status/1709739956942348331?ref_src=twsrc%5Etfw">October 5, 2023</a></blockquote><p dir="ltr">The trial is receiving significant media attention, from the crypto-specific ones and also mainstream finance. As the 12-member jury heard the opening arguments on Wednesday, the investors are keen on knowing the decision, as they are waiting for the settlement with the bankruptcy administration, which is unrelated to the trial.</p><p dir="ltr">The defense lawyers argued that SBF is a math nerd who overlooked risk management but did not steal from customers. However, prosecutors said the <a href="https://www.financemagnates.com/cryptocurrency/sam-bankman-frieds-day-in-court-what-really-happened-at-ftx/">entire FTX empire</a> was "built on lies."</p><p dir="ltr">The Court Room Strategy</p><p dir="ltr">Some vocal legal minds on social media are also heavily coitizing SBF and the arguments of the defense. John Reed Stark, the President, John Reed Stark Consulting LLC and a former SEC employee, wrote: "SBF’s “Alameda was a market-maker” defense is absurd. Calling Alameda a “market-maker” is like calling a crooked airport baggage handler an airline pilot. Alameda was SBF’s personal, custom designed money laundering conduit. Period. End of story."</p><blockquote><p lang="en" dir="ltr">SBF’s “Alameda was a market-maker” defense is absurd. Calling Alameda a “market-maker” is like calling a crooked airport baggage handler an airline pilot. Alameda was SBF’s personal, custom designed money laundering conduit. Period. End of story.In case you have not heard,… <a href="https://t.co/Hvq9EKSNCI">pic.twitter.com/Hvq9EKSNCI</a></p>— John Reed Stark (@JohnReedStark) <a href="https://twitter.com/JohnReedStark/status/1711360843948994851?ref_src=twsrc%5Etfw">October 9, 2023</a></blockquote><p dir="ltr">Stark also questioned the effectiveness of the defence strategy in light of some of the previous confessions of SBF about his fake image in public.</p><blockquote><p lang="en" dir="ltr">Not sure the "I'm a good guy, I just messed up," defense is going to work for Sam Bankman-Fried. After all, SBF has already confessed in texts that his mantra of so-called effective altruism was all a "front," even referring to his bogus philanthropic efforts as "this dumb game… <a href="https://t.co/G4u5h5gexH">https://t.co/G4u5h5gexH</a></p>— John Reed Stark (@JohnReedStark) <a href="https://twitter.com/JohnReedStark/status/1709555837646082464?ref_src=twsrc%5Etfw">October 4, 2023</a></blockquote><p>Analyzing the defence's strategy, Sam Enzer, partner at Cahill Gordon &amp; Reindel, said in a podcast: "The defense is trying to humanize Sam Bankman-Fried… [Obvious questions to the witnesses] corroborates that little fact and it takes some of the sting out of the bad testimony."</p><p dir="ltr">FTX Victims Are Taking Stands</p><p dir="ltr">The first witness who took the stands was Marc-Antoine Julliard, a cocoa bean trader, who lost $100,000 as a customer with the FTX. He was under the impression that <a href="https://www.financemagnates.com/cryptocurrency/the-ftx-full-story-all-you-need-to-know/">FTX </a>had strong financials, especially because of celebrities and venture funds attached to the brand, and felt "extremely anxious" when he could not withdraw his funds from the platform. He further said that he did not know the platform borrowed his money.</p><p dir="ltr">FTX had an estimated customer base of more than 1 million. While most of the customers, or now victims, remain silent spectators of the trial, a few vocal ones took to social media to express their distaste for SBF.</p><p dir="ltr">"It affected my life," Lee Rees, a London-based crypto trader who lost $100,000 to the collapsed exchange, told Reuters. "I had a life to pay for. It's like your boss doesn't pay you. You can't live, can you?"</p><p dir="ltr">While FTX's bankruptcy administration looks after the customers' claims, Rees, who filed a claim, mentioned that "all these terms were so complicated," adding: "You need a lawyer to understand it… We don't know if we're getting our money back or not."</p><p dir="ltr">Maxime, who is from Belgium and had a "six-figure sum" on FTX, said: "I think there is a risk that there will be many victims who will find themselves victims again because of this procedure."</p><p dir="ltr">Who All Are Responsible?</p><p dir="ltr">At its prime FTX was one of the top global cryptocurrency exchanges. It ran extensive campaigns and bought celebrity endorsements. SBF was also active in the US political circle. He was one of the top donners in President Joe Biden's election campaign. Now, many are raising the US government's the blind eye towards the lapses of FTX. </p><blockquote><p lang="en" dir="ltr">Why US politicians don't act and restore FTX exchange ?Now we have unequivocal confirmation that restarting the FTX exchange is an imperative matter of national security.<a href="https://twitter.com/VP?ref_src=twsrc%5Etfw">@VP</a><a href="https://twitter.com/POTUS?ref_src=twsrc%5Etfw">@POTUS</a><a href="https://twitter.com/JusticeOIG?ref_src=twsrc%5Etfw">@JusticeOIG</a><a href="https://twitter.com/SECGov?ref_src=twsrc%5Etfw">@SECGov</a><a href="https://twitter.com/GaryGensler?ref_src=twsrc%5Etfw">@GaryGensler</a> <a href="https://twitter.com/SenWarren?ref_src=twsrc%5Etfw">@SenWarren</a> <a href="https://twitter.com/CFTC?ref_src=twsrc%5Etfw">@CFTC</a> <a href="https://t.co/KbZHdiiLAo">https://t.co/KbZHdiiLAo</a></p>— FTXRELOADED