Thaksin faces up to 15 years in prison if he is convicted in the closed-door trial in Bangkok, where he stands accused of breaching strict lese majeste laws that shield Thailand's royal family from abuse and criticism.

For the past quarter-century, the 75-year-old telecoms magnate has been a defining figure of Thai politics, founding a political clan which has jousted with the traditional pro-royal, pro-military elite.

But his prosecution -- combined with the suspension of his daughter, Prime Minister Paetongtarn Shinawatra, this month -- represents a dramatic waning of their family's political fortune, analysts say.

The prosecution's case revolves around remarks Thaksin made to South Korean media a decade ago. A verdict is not expected for several weeks.

Thaksin's lawyer Winyat Chatmontri told AFP he gave testimony in the morning "and will continue throughout the rest of the day".

Around 50 Thaksin supporters gathered at the courthouse wearing shirts the red color of his political movement and emblazoned with a portrait of his face.

"He is a very talented guy," 79-year-old retired accountant Vaew Wilailak told AFP. "But from past experience, bad people just want to get rid of him."

Thaksin returned to Thailand in August 2023 after 15 years in exile, following a military coup which ousted him from the premiership he won in two elections.

He returned the day his family's Pheu Thai party took office at the head of a coalition government backed by their conservative former enemies, fueling suspicions a backroom deal had been struck.

Thaksin was immediately sentenced to eight years in prison on graft and abuse of power charges -- later reduced to one year by a pardon from King Maha Vajiralongkorn.

But political analyst Yuttaporn Issarachai told AFP: "There is always someone within the establishment who sees him as a threat to Thai society."

In recent interviews, Thaksin affirmed his loyalty to the monarchy and expressed gratitude for the king's pardon.

Speaking to AFP outside the court on the trial's opening day on July 1, Thaksin's lawyer Winyat said his client appeared "chill" despite the seriousness of the case.

On the same day, Thaksin's daughter Paetongtarn was suspended by the Constitutional Court pending an ethics probe into her conduct during a leaked diplomatic phone call discussing a deadly border clash between Thailand and neighboring Cambodia.

In the call, Paetongtarn referred to Cambodian ex-leader Hun Sen as "uncle" and described a Thai military commander as an "opponent" -- sparking backlash for seeming to kowtow to a foreign statesman and undermine her own country's military.

Pheu Thai's coalition has been abandoned by key conservative backers over the call, leaving it with a razor-thin parliamentary majority steered by a caretaker prime minister.

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