Sam Bankman-Fried goes on trial as crypto struggles to move past its FTX hangover

When your FT-ex keeps hangin’ around… Jury selection in Sam Bankman-Fried’s trial kicked off yesterday, eliciting a sigh of relief from an industry desperate to put the FTX scandal behind it. Prosecutors have accused SBF of defrauding his exchange’s customers out of billions of dollars, charging him with fraud and money laundering. SBF has pleaded not guilty. Opening arguments are set to kick off today, and the jury could return a verdict as early as next month.

• Cellblock-chain: If found guilty, the onetime billionaire could spend the rest of his life in prison. FYI: some experts think 10 to 20 years is more likely.

• Character, witnessed: SBF’s former coworkers are expected to testify against him. On the list: Caroline Ellison, who was CEO of FTX’s sister company, Alameda Research (she also used to be SBF’s girlfriend).

The crypto world’s #Scandoval… involves lots of jilted lovers. As recently as last fall, the crypto world embraced SBF as a “White Knight” who showered the industry with investments and attention. At its peak, FTX was valued at $32B. Now many in the industry hope to see SBF convicted as a first step toward finally moving on. And there’s much to move on from…

• Mount up: The SEC cranked up its scrutiny of crypto after FTX’s collapse, going after companies including Coinbase, Binance, and Bittrex.

• Once bitten: Retail and institutional investors alike said they felt burned by FTX and that they’d pull back on crypto. A Pew survey this year found that 75% of Americans who’d heard of crypto weren’t sure the ways to invest in it were safe.