Brandon Livesay
Live reporter

Image source, Reuters

Was the crypto king acting in good faith or amassing billions in personal wealth built on a web of lies?

Those were the two opposing arguments that came out of the first proper day of Sam Bankman-Fried's trial in New York City.

The prosecution claimed the man known as SBF looted customer cash, billions of dollars that was sitting in his FTX crypto currency platform. They say he used this money to prop up his own risky investments in his other company, Alameda Research.

SBF's legal team cast him as a "math nerd" who was acting in "good faith" and simply overlooked massive financial risks.

They said it is not a crime to be the CEO of a company that goes bankrupt.

The case is likely to go for six weeks and we will be hearing from witnesses who were involved in FTX, and also from clients who lost vast sums of money.

For a full wrap of today's events you can check out this article.

Our writers today were Lisa Lambert, Madeline Halpert, Thomas Mackintosh and Malu Cursino.

This page was edited by Marianna Brady and myself.

Thanks for joining us.

Kayla Epstein
Reporting from court in New York

Image source, Getty Images

Court may be over for the day but we have one more detail that simply cannot be ignored.

Prosecutors played an FTX ad featuring the curmudgeonly comedian, Larry David, that has become somewhat famous since the firm's downfall.

In the ad, David is sceptical of crypto.

“It’s FTX. It’s a safe and easy way to get into crypto,” an actor says.

“Ehhhh, I don’t think so,” David replies with his signature scowl. “And I’m never wrong about this stuff – never!”

The ad hinges on David’s Curb Your Enthusiasm persona as a grump, but now that FTX has imploded, he sounds prescient rather than pompous.

Turns out it was a pretty, pretty good call.

With court over for the day, let's recap the key moments from the start of Sam Bankman-Fried's trial in New York:

• The one-time crypto currency billionaire faces seven counts of fraud and conspiracy
• Prosecutors said the FTX founder looted billions of dollars in customer money from thousands of victims for his own personal gain
• "He had wealth, he had power, he and influence but all of it was built on lies,” prosecutors said
• His defence lawyer told the court Bankman-Fried made mistakes but acted “in good faith”
• Jurors heard from the first witness, Frenchman Marc Antoine Julliard who lost £110,00 ($133,600) on the FTX platform
• In cross-examination, Julliard accepted that crypto investment can be risky and admitted he had not read the terms when he set up an FTX account

Image source, Reuters

With court now over for the day, let's examine Sam Bankman-Fried's time in jail since his arrest.

Back in August, we heard from his lawyer that the founder of collapsed cryptocurrency exchange was struggling to prepare for the fraud trial because of a lack of adequate food in prison.

Bankman-Fried, who is vegan, was "subsisting on bread and water" according to his lawyer Mark Cohen. US media reported that peanut butter was another component of his limited diet.

At the time, Cohen also said that Bankman-Fried was not being provided with the attention deficit hyperactive disorder (ADHD) drug Adderall and his medication for depression was also running low at the time.

Read more here.

Natalie Sherman
New York business reporter, reporting from court

The second witness called by the government was Adam Yedidia, a long-time friend who lived with Sam Bankman-Fried in college and later went to work for him as a developer at FTX.

He told the court he resigned shortly before the firm went bankrupt because he had learned Alameda used FTX customer deposits to pay back its loans to creditors.

Court has now officially adjourned for the day.

Kayla Epstein
Reporting from court in New York

Bankman-Fried’s attorney, Mark Cohen, has just cross-examined the first witness, Marc Antoine Julliard.

When asked if Julliard knew crypto was risky, he replied, “yes.”

Julliard was also asked if he read the terms of service when signing up for an FTX account, which he said he had not.

In response to the prosecution’s mention of advertisements featuring celebrities like supermodel Gisele Bündchen, the witness was asked if he makes financial decisions based on a model in an advertisement.

Julliard replied he would not have made investments just for the celebrity spokespeople.

But in these opening questions, Bankman-Fried's attorney certainly came off as the weaker party.

He faced multiple objections from the prosecution over the relevance of some of his questions. In the end he held the lectern for less time than the prosecution.

We’re now heading to recess.

Natalie Sherman
New York business reporter

The first witness is a former FTX customer, Marc Antoine Julliard, a Frenchman who has lived in London for 10 years.

He tells the court he deposited £110,000 ($133,600) on the exchange, convinced of its legitimacy by its size, investors and marketing.

He remembered a celebrity who had hawked the firm, model Gisele Bündchen.

A commodities trader, he said he knew the risks of investing in crypto and was prepared to take responsibility for losses.

"If I trade, I'm responsible for my own decisions," he says.

But he said he had never considered the risk that someone else would be using his money to trade.

"That's not what I signed up for," he says.

Thomas Mackintosh
Live reporter

Let's bring you a quick recap of the key moments which have happened so far today in the courthouse in lower Manhattan:

• The trial of Sam Bankman-Fried kicked off in New York today, with the former billionaire facing charges of "massive" fraud and money laundering - allegations he denies
• Twelve people were selected for the jury as well as six alternates, winnowed from 45 people
• From inside the courtroom, the 31-year-old looked pale in a grey suit with his signature hair short. He spent much of the morning conferring with his attorneys, taking an active interest in jury selection
• The prosecution opened their case by saying Bankman-Fried's wealth and power had been "built on lies"
• Prosecutor Thane Rehn said Bankman-Fried took more than $10 billion from unsuspecting FTX customers
• Defence lawyer Mark Cohen acknowledged FTX lent money to Alameda, but said Bankman-Fried "reasonably believed" those loans were permitted and backed up by collateral
• "There was no theft," Cohen told the court. "Sam didn't defraud anyone. Sam didn't intend to defraud anyone. Sam acted in good faith."

Image source, Reuters

Court sketches from two artists have begun rolling out from today's hearing.

While they bring out different features of SBF, they both show him sporting a new hair style that is shorter and neater than the wild hair that had become his trademark.

In one sketch, he looks on as his defense lawyer makes a point. In the other SBF sits with the defense team at a table with laptop computers.

Image source, Reuters

Kayla Epstein
Reporting from court in New York

Image source, Reuters

The court has just returned after a break from lunch.

Before that, we heard from Bankman-Fried’s lawyer, Mark Cohen.

Cohen repeatedly told the jury Bankman-Fried was acting “in good faith”.

“He did not steal from anyone,” Cohen said, claiming the relationship between FTX and Alameda research was above board.

The government, he said, was retroactively trying to allege fraud after the dust had settled on the companies’ collapse.

He portrayed Bankman Fried as a “math nerd who didn’t drink or party” and who made business decisions that he felt were correct at the time. Because of the frantic pace of his company’s growth, some crucial details like risk management were “overlooked”.

Cohen argued the government was taking the facts about FTX and Alameda’s downfall “out of context”.

Bankman-Fried was “willing to give up everything he owned personally to make things work,” he said.

Natalie Sherman
New York business reporter

During opening remarks today, lawyers for Sam Bankman-Fried offered a glimpse into what is likely to be a broader strategy during the trial.

They focused less on Bankman-Fried's actions and more on cryptocurrency itself.

"It's not a crime to be the CEO of a company that later filed for bankruptcy," his lawyer, Mark Cohen, said.

Bankman-Fried's parents seemed to be engaged as well. I was sitting in front of them during jury selection, when they were discussing what strategy made sense for selecting jurors.

During lulls, Bankman-Fried's mother could also be heard asking about reviews of Michael Lewis's new book, Going Infinite, which covers the rise and fall of Bankman-Fried.

Kayla Epstein
Reporting from court in New York

Jury selection in the case took a while, finally concluding after a day and a half of questioning.

This being Manhattan, there were multiple potential jurors who were lawyers, former prosecutors, or had worked in finance.

One prospect said that his roommates traded cryptocurrency. Another revealed during questioning that his wife worked for the law firm involved in FTX’s bankruptcy.

In the end, 12 jurors and six alternates were selected – though some of the individuals chosen still raised objections due to scheduling issues.

The judge did not seem pleased, but promised to work to accommodate them.

Kayla Epstein
Reporting from court in New York

Image source, Reuters

Prosecutors made a simple argument over and over again in their opening statement: Bankman-Fried “lied to his customers and took their money”.

“He was using his company FTX to commit fraud on a massive scale,” the prosecutor said.

They argued he took “billions of dollars from thousands of victims” and spent it on himself - pricey real estate in the Bahamas, adverts featuring celebrities, and political contributions.

The prosecution laid out their theory of his alleged scheme - that he took money and cryptocurrency from FTX users and secretly moved it into a trading firm he also owned, Alameda Research.

Prosecutors claim he used those funds for personal gain. When the market crashed down around them, customers lost billions.

The court heard Bankman-Fried controlled both businesses and orchestrated the alleged scheme.

Natalie Sherman
New York business reporter

Image source, Getty Images

From inside the courtroom, Bankman-Fried looked pale in a gray suit with his signature locks short.

He spent much of the morning conferring with his attorneys, taking an active interest in jury selection but never seeming to look back, even after his parents - both Stanford professors - entered the courtroom.

His mother, Barbara Fried, appeared to be grinding her jaw.

Twelve people were selected for the jury as well as six alternates, winnowed from 45 people.

Kayla Epstein
Reporting from court in New York

During opening arguments, Bankman-Fried wore a dark suit and sat quietly, often slouched in his chair, between his two defence attorneys.

He watched carefully as government prosecutors, as well as his own lawyers, made their opening cases to the jury.

But otherwise he remained silent as lawyers argued over his fate.

Natalie Sherman
New York business reporter

I'm just now headed out of the courtroom on a break after opening statements finished.

During remarks, prosecutors painted Sam Bankman-Fried as someone who had power and influence, but "all of it was built on lies".

"He was committing a massive fraud and taking billions of dollars from thousands of victims," prosecutor Thane Rehn said.

"He poured money - other people's money - into his own investments to try to make himself even richer," he added.

Bankman-Fried's defence lawyer, meanwhile, argued that the "crypto king" was following "reasonable" business practices.

We're hearing that opening statements from the prosecution and defence teams have now been delivered.

We'll be bringing you more details about what lawyers said in those statements from our reporters in court shortly.

Court is now in recess for lunch - the first witness will take the stand when court resumes in an hour.

Stick with us as we bring you the latest from the Manhattan federal courthouse.

Opening statements are now underway in today's trial.

Prosecutors are giving their remarks, with a lawyer for the US attorney's office in Manhattan arguing that Bankman-Fried's wealth and power was "built on lies", according to a Reuters report from the courtroom.

"He was using his company, FTX, to commit fraud on a massive scale, and the money he was spending to build his empire - it was money he was stealing from FTX customers," said the prosecutor, Thane Rehn.

Bankman-Fried's legal team is expected to give their opening remarks next.

Joe Tidy
Cyber-security reporter

The crypto world will be watching this trial closely for a few reasons.

Firstly SBF - as he was affectionately known - was a giant of the industry.

More than a million followers on Twitter, a huge name on the conference circuit and the man leading the charge to make crypto a mainstream and (lightly) regulated industry.

There are plenty of fallen crypto heroes out there, but SBF is the biggest name by far.

Whether or not he’s found guilty, and how he defends himself after such incriminating reports, is fascinating.

Then there are the estimated one million people still waiting to find out if they’ll get their money back. As much as $8bn (£6.5bn) could have been lost in the collapse.

There are also those who consider SBF’s trial as less about crypto and more about straight-up fraud.

Sam Bankman-Fried faces seven charges in this trial. Many of them involve wire fraud, meaning the fraud was allegedly carried out over phones, computers or other communications technology.

The charges are:

• Committing wire fraud on FTX customers
• Conspiring to commit wire fraud on FTX customers
• Committing wire fraud on lenders to Alameda
• Conspiring to commit wire fraud on Alameda Research's lenders

• Conspiring to defraud FTX customers in connection to derivatives
• Conspiring to commit securities fraud on FTX investors
• Conspiring to launder money

FTX is the cryptocurrency exchange and Alameda Research is the hedge fund.

Central to all the charges is the allegation that Bankman-Fried and associates illegally used customer money from FTX to prop up Alameda Research.