Sam Bankman-Fried ready to Plead guilty to fraud in FTX case
2022.12.28 13:39
Sam Bankman-Fried ready to Plead guilty to fraud in FTX case
Budrigannews.com – Next week, Sam Bankman-Fried is expected to enter a plea to criminal charges that he stole billions of dollars in customer funds from his failed FTX cryptocurrency exchange and defrauded investors.
The 30-year-old is supposed to be charged on the evening of Jan. 3, 2023, preceding U.S. Locale Judge Lewis Kaplan in Manhattan government court, court records on Wednesday showed.
After the original judge recused herself on the grounds that her husband’s law firm had advised FTX prior to its collapse, Kaplan was assigned to the case on Tuesday.
Bankman-Fried has been accused by prosecutors of engaging in a “fraud of epic proportions” for many years, using customer deposits to support his hedge fund Alameda Research, purchase real estate, and contribute to political campaigns.
If convicted, Bankman-Fried faces charges of two counts of wire fraud and six counts of conspiracy, including conspiracy to launder money and violate campaign finance laws.
Bankman-Fried acknowledged FTX’s risk management flaws prior to his arrest on December 12, but he denied being criminally responsible.
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Caroline Ellison, the former chief executive of Alameda, and Gary Wang, the former chief technology officer of FTX, have both admitted their roles in the company’s demise and agreed to assist prosecutors.
On December 22, Bankman-Fried was ordered to stay with his parents in Palo Alto, California, where they teach at Stanford Law School, on a $250 million bond. He is under electronic surveillance.
FTX declared financial insolvency security on Nov. 11. On December 13, its new CEO John Ray told Congress that the exchange was run by “grossly inexperienced, non-sophisticated individuals” who had lost $8 billion in customer funds.
