The criminal fraud trial of FTX founder and former CEO Sam Bankman-Fried entered its second day on Wednesday, and the first witnesses could be called to testify by the afternoon.
Jury selection is expected to be completed by mid-morning, followed by opening statements from the prosecution and defense, both of which are expected to last around an hour each.
The government plans to begin calling witnesses by this afternoon, and their key witness is Caroline Ellison, Bankman-Fried's ex-girlfriend and former top deputy who was the CEO of his hedge fund, Alameda Research, at the time of his crypto empire's collapse.
Also on the prosecution's list of potential witnesses are Bankman-Fried's father, Joseph Bankman, and brother, Gabriel Bankman-Fried. FOX Business was told either of them could face hostile questioning on the stand, given both are under suspicion for involvement with Sam Bankman-Fried's alleged criminal activity.
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Former Trump White House Communications Director Anthony Scaramucci was named as a possible witness for prosecutors, too. A source close to Scaramucci told FOX Business that as of Tuesday afternoon, he had not been called to testify and does not expect to be.
Bankman-Fried was indicted on several charges in connection with the collapse of FTX, once the second-largest crypto exchange in the world, after it was hit with a flood of withdrawals following reports that the exchange had merged assets with Alameda.
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Customers lost billions as a result of the collapse, and federal prosecutors in Manhattan have accused Bankman-Fried of misleading investors and lenders, and stealing billions of dollars in customer funds to buy real estate, make political contributions and make up for losses at Alameda.
In his ongoing current trial, Bankman-Fried is facing seven federal counts of fraud and conspiracy. It is expected to last roughly six weeks, and a second criminal trial against him is set for March, which will address separate charges including campaign finance violations.
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Bankman-Fried has acknowledged that FTX had inadequate risk management but maintains that it did not steal funds. He has pleaded not guilty to all the charges brought against him.
FOX Business' Kelly O'Grady, Daniel Hillsdon and Eleanor Terrett contributed to this report.
