Just-In: Sam Bankman-Fried To Enter Plea Next Week In FTX Fraud Case
The disgraced crypto tycoon Sam Bankman Fried is likely to plead guilty next week to criminal allegations that he misled investors, plundered billions in client cash at his now bankrupt FTX exchange. According to court records, the 30-year old FTX founder will be arraigned in Manhattan federal Court on Wednesday, January 3, 2023 before U.S. District Judge Lewis Kaplan.
SBF Plea for Not Guilty
Prosecutors accuse Bankman-Fried, of engaging in a “fraud epic proportions” over a number of years. He used customer deposits to maintain his Alameda Research hedge fund, which is part of the FTX umbrella. The money was also used to buy real property, fund crypto media outlets, and make political contributions.
Read More: Sam Bankman Fried Used $546 Mn From Alameda Research to Buy Robinhood Shares
Tuesday saw the exclusion of the original judge in the case, which resulted in Lewis Kaplan being assigned the case. After it was discovered that her husband’s law firm had provided assistance to the FTX crypto exchange before its collapse, the judge resigned.
Eight Counts of Criminal Charges
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Two wire fraud charges are being brought against Bankman-Fried, along with six conspiracy counts. These include conspiring to launder money or violate campaign finance laws. SBF could spend a significant time behind bars if it is found guilty.
Instead, Caroline Ellison, former chief executive of Alameda and Gary Wang (former chief technical officer of FTX), have both agreed to cooperate after pleading guilty for their roles in the collapse. This was made public when SBF was being extradited from the Bahamas to the United States.
After his initial appearance before a federal court in Manhattan, Bankman-Fried was released from custody on a bond of $250 million. He was also placed under house arrest at Palo Alto, where he lives together with his parents, the eminent Stanford University law professors Joseph Bankman & Barbara Fried.
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