Sam Bankman-Fried is expected to plead not guilty to FTX fraud charges

Disgraced founder of FTX Sam Bankman Fried He is expected to enter a “not guilty” plea next week as is Eight federal charges In the Southern District of New York in relation to Dropp off from its own cryptocurrency exchange, according to a report from The Wall Street JournalcTo talk about someone familiar with the situation.

Bankman-Fried is expected to plead not guilty in person in Manhattan on January 3.

FTX collapsed in November following a sale of its FTT token and a liquidity crisis on the exchange, which used celebrities like Tom Brady and Larry David to boost its image as its valuation. It rose to $32 billion In early 2022.

The exchange reportedly allowed trading firm Alameda Research, also founded by Bankman-Fried and allegedly a separate company, to tap into ample liquidity with “Confidential Exceptions” to the filtering rules. Alameda allegedly used billions of dollars in FTX client funds to plug holes in its balance sheet afterward Terra Fall last summer.

In various interviews after the collapse of FTX, Bankman-Fried blamed the liquidity crisis on errors and mistakes, but denied intentionally breaking the law or misleading investors.

“Never in my career have I seen such a complete failure of corporate controls and such complete absence of reliable financial information as happened here,” John J. Ray, FTX’s new CEO, wrote in a November bankruptcy filing. Describes various deficiencies by the company’s previous management.

Finally, it was Bankman Fried in the Bahamas Earlier this month, where FTX was headquartered, and He was charged with eight counts of fraud by the United States Attorney General.

He was charged with: conspiracy to commit defrauding clients; defrauding customers; conspiracy to commit creditor fraud; fraud against lenders; conspiracy to commit commodity fraud; conspiracy to commit securities fraud; Conspiracy to commit money laundering. and conspiracy to defraud the United States and violate campaign finance laws.

One-time encryption pole Also from the US Securities and Exchange Commission (SEC). trial From the Commodity Futures Trading Commission (CTFC), which also mentions FTX and Alameda. Bankman-Fried was extradited to the US last week and has been released into the custody of her parents on a $250 million bond.

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