Sam Bankman-Fried set to plead not guilty to fraud, report says

Sam Bankman-Fried set to plead not guilty to fraud, report says



By Khristopher Brooks


The collapse of FTX prompts reaction from the cryptocurrency industry

The collapse of FTX prompts the reaction of the cryptocurrency industry


According to a report, Sam Bankman-Fried is scheduled to appear in court Tuesday. He is expected to plead not guilty for defrauding customers or investors.ReportSource: Reuters

The U.S. Attorney’s Office in the Southern District of New York hasBankman-Fried chargedEight counts of fraud, money laundering, and other financial crimes were filed. Authorities said that Bankman-Fried, who resigned as CEO of FTX in November, also committed fraud and money laundering by donating to candidates in New York and committees in New York using another person’s name.

The 30-year-old will be arraigned in Manhattan federal court. This will be his second appearance before a judge since FTX was, until recently, the world’s second largest platform for buying and selling digital currencies.In November, bankruptcy was filed. He posted Last month, a bond of $250 million was issuedHe is currently under house arrest at his California parents’ home, awaiting trial. The parents of Bankman-Fried used their Equity in your home As collateral for the bond.

Prosecutors claimed that Bankman-Fried had purposely deceived customers by using crypto assets to pay debts and expenses incurred through FTX’s hedge funds, Alameda Research.

Alameda’s crypto wallets began to transfer funds off the platform after Bankman-Fried was released on bail. Coin Telegraph. This sparked speculation on social media about whether he was behind the withdrawals. Bankman-Fried refuted this claim on Twitter.

He tweeted Friday, “None of those are me.” “I’m not and could not be moving any of these funds. They are not available to me anymore.”

None of these are me. I am not authorized to move any of these funds. I do not have access to them.

— SBF (@SBF_FTX). December 30, 2022

Bankman-Fried said that he wasn’t certain who made the withdrawals.

He tweeted, “I believe it’s likely that different legit legs of FTX are able to access these funds,” he said. “Hopefully that’s what is happening here. If not, one can step in soon to make it happen.”

Mark Cohen, Bankman-Fried’s lawyer, did not immediately respond Monday to a request for comment.

Experts predict a lengthy court battle in Bankman Fried’s case. During which prosecutors will need to prove that he intentionally swindled FTX clients out of their crypto assets, prosecutors will have a long time to prove his innocence. Gary Wang, the co-founder of the company, as well as Carolyn Ellison, former CEO of Alameda have already pleaded guilty.

Prosecutors expect Ellison and Wang to be witnesses for the government during Bankman-Fried’s trial. last month.

Customers of FTX Last week, a lawsuit was filed In order to obtain priority status in bankruptcy proceedings, the company can be sued.

Khristopher J.

Khristopher Brooks is a CBS MoneyWatch reporter covering financial, consumer, and business stories. These stories range from economic inequality and housing problems to bankruptcies or the business of sport.


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