FirstFT: Sam Bankman-Fried painted as ‘cartoon villain’, his lawyer says

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Good morning. We begin today with the hotly anticipated criminal trial of Sam Bankman-Fried, which kicked off on Wednesday with duelling opening statements in front of a Manhattan jury.

The former cryptocurrency tycoon’s lawyers laid out their defence, saying Bankman-Fried has been painted as a “cartoon villain” by prosecutors whose case depends largely on hindsight.

Earlier on Wednesday, US prosecutors had accused Bankman-Fried of committing “fraud on a massive scale”, lying to investors, lenders and customers of his FTX crypto exchanges.

“This man stole billions of dollars from thousands of people,” assistant US attorney Thane Rehn told jurors, pointing forcefully at Bankman-Fried, who sat impassively at the defence table.

Our report from the courthouse has more, including what to expect in the coming days.

Here’s what else I’m keeping tabs on today:

• Japan: A second round of wastewater is set to be released from the stricken Fukushima nuclear plant, a move that is furiously opposed by China and other regional neighbours. But most experts say the discharge is safe.

• Economic data: France reports industrial production data, Germany publishes trade balance figures and the S&P Global/Cips construction purchasing managers’ index is due for the UK.

• Sport: The 2023 ICC Cricket World Cup begins in India, with England taking on New Zealand in the first match.

Five more top stories

1. Chinese authorities have approved the “rectification” of China-focused consultancy Capvision, the company has said in a statement, just months after Beijing launched a crackdown on the operations of foreign consultancies and due diligence groups. State media in May reported that security agents had raided multiple offices of Capvision, which became emblematic of Beijing’s concerns that international business consultants posed a national security threat.

2. Republicans on Capitol Hill have begun their search for a new leader, a day after a historic rebellion by hardline party members unseated House of Representatives Speaker Kevin McCarthy and plunged Washington into turmoil. The race is likely to be dominated by allies of Donald Trump — some of who have suggested the former president should enter the race. Here’s more on the potentially messy fight for the Speaker’s gavel.

3. Airbnb is plotting a push into longer-term housing rentals and a renewed drive on experiences as part of a shake-up of the travel accommodation app, chief executive Brian Chesky told the FT. From next year, the online rental company would “go a little bit beyond its core business”, Chesky said. Read more on his plans for the app.

4. Russia has warned it will oppose a global deal to reduce the use of fossil fuels, setting up a clash with western powers at this year’s UN climate summit. The US and EU member states are among a large group of countries calling for a timeline to phase out the use of fossil fuels ahead of the COP28 climate summit in November. Russia’s opposition highlights how resistance from some of the leading oil, gas and coal producers could undermine a new climate pact. Read the full story.

5. Japan’s central bank made unscheduled purchases of government debt on Wednesday as yields on benchmark bonds hit their highest mark in a decade, while a global market sell-off also continued to drive US Treasury yields to 16-year highs. The BoJ is under increasing pressure to maintain its policy of controlling yields on the 10-year JGB while also limiting a slide in the yen. Here’s more on the bank’s offer.

News in-depth

Indian businesses are beginning to make forays into Jammu and Kashmir, fours years after Narendra Modi’s government cracked down on the volatile northern territory. New Delhi has been quietly pressing companies to invest in Kashmir since revoking the state’s special autonomous status in 2019. As the unrest has abated — with dissidents silenced or imprisoned — some companies are now heeding the government’s call, driving a business revival in the troubled region.

We’re also reading . . . 

Poll of the day

Climate change is making traditionally popular sunbelt locations increasingly unsustainable as places to live, causing many to look north. Have you considered moving to escape the effects of climate change? Vote in our latest poll.

Take a break from the news

The British thoroughbred Frankel retired in 2012 following an undefeated 14-race career — in all likelihood, “the best there’s ever been”, according to his trainer. Today, Frankel lives happily in his birthplace at Banstead Manor Stud, the world’s most successful stud farm. The FT received an exclusive tour.

Additional contributions from Tee Zhuo and Gordon Smith