Sam Bankman-Fried, the co-founder of failed cryptocurrency exchange FTX, faced jurors for the first time on Wednesday as his trial on federal fraud and money-laundering charges began in Manhattan. Assistant U.S. Attorney Nathan Rehn accused Bankman-Fried of committing "a massive fraud," alleging that he had swiped at least $10 billion from customers and investors to finance outside ventures such as political donations and luxury real estate purchases. If convicted, Bankman-Fried, who has maintained his innocence since his arrest late last year, could face a potential prison term of more than a century.

In his opening statement, Bankman-Fried's defense attorney, Mark Cohen, argued that his client had no criminal intent while building his crypto empire. Cohen described Bankman-Fried as a "math nerd who didn't drink or party" and claimed that he did not defraud anyone or have any intention to do so. The trial, expected to last six weeks, began with jury selection, as attorneys and Judge Lewis A. Kaplan narrowed down a pool of 45 potential jurors to a final jury of 12, with six alternates.

Bankman-Fried may face an uphill battle in his trial, as four of his closest associates have already pleaded guilty to fraud and other criminal charges. Three of them, including Bankman-Fried's former girlfriend and business associate Caroline Ellison, are expected to testify against him in exchange for lighter sentences. FTX collapsed in November 2022, leading to Bankman-Fried's arrest the following month. Prior to the collapse, Bankman-Fried had a net worth on paper of $32 billion and was known for his association with politicians.

Prosecutors are expected to focus on Bankman-Fried's alleged use of customer funds without their consent, rather than delving into the complexities of cryptocurrencies. They will argue that the money was spent on personal expenses and investments unrelated to FTX. Michael Zweiback, a former federal prosecutor, stated that the case is "less about complicated investments and all about garden-variety fraud."

Bankman-Fried, the son of Stanford University law school professors, studied at the Massachusetts Institute of Technology before working at a Wall Street investment firm. He then moved to San Francisco in 2017 and helped start FTX in 2019.

The trial not only puts Bankman-Fried under scrutiny but also highlights the risks and questions surrounding the emerging crypto trading industry. The industry has been marred by a series of high-profile bankruptcies and concerns about investor protection. Bankman-Fried's case, along with charges against other crypto platforms such as Binance and Coinbase, serves as a reminder that crypto platforms must comply with existing laws and regulations.

The trial will continue as both the prosecution and the defense present their cases, with Bankman-Fried's fate hanging in the balance.