False claims and risky trades at the Silicon Valley start-up HeadSpin were part of a pattern of trouble emerging at young companies that lacked controls.
They are set to start their defense on Thursday, with the FTX founder planning to testify in his criminal fraud trial. Hurdles include what Mr. Bankman-Fried’s former associates said on the stand.
The last crisis, in 2011, led to a credit downgrade that sank stocks. This time, Treasury Secretary Janet Yellen has warned of a “financial catastrophe.”