Disgraced crypto tycoon Sam Bankman-Fried is likely to enter a plea next week to the criminal allegations that he misled investors and plundered billions of dollars in client cash at his now-bankrupt FTX exchange. According to court records released on Wednesday, the 30-year-old FTX founder is scheduled to be arraigned in Manhattan federal court on the afternoon of January 3, 2023, before U.S. District Judge Lewis Kaplan.

SBF’s Plea For Not Guilty

Prosecutors have accused Bankman-Fried of participating in a “fraud of epic proportions” over a period of years by utilizing customer deposits to maintain his Alameda Research, a hedge fund under the FTX umbrella. The money has also been utilized to buy real estate, fund crypto media outlets and make political contributions.

Read More: Sam Bankman-Fried Used $546 Mn From Alameda Research To Buy Robinhood Shares

On Tuesday, the original judge in the case exempted herself, which led to the assignment of the case to Lewis Kaplan. The judge’s recusal after it was found that, her husband’s law firm had assisted the FTX crypto exchange prior to its collapse.

Eight Counts Of Criminal Charges

Bankman-Fried is accused of two charges of wire fraud and six counts of conspiracy, including conspiring to launder money and violate campaign finance laws. If found guilty, SBF stands the possibility of serving a significant amount of time behind bars.

On the contrary, Caroline Ellison, the former chief executive of Alameda, and Gary Wang, the former chief technical officer of FTX, have both agreed to cooperate with prosecutors after pleading guilty to their roles in the collapse of FTX. This was announced when SBF was being extradited to the United States on a private jet from the Bahamas.

On December 22, Bankman-Fried was released on a $250 million bond following his initial appearance in a federal court in Manhattan. Additionally, he was ordered to remain under house arrest at the Palo Alto residence where he lives with his parents; eminent Stanford University law professors Joseph Bankman and Barbara Fried.

Also Read: Popular Crypto Influencer Picks His Top 3 Cryptos For 2023 Bull Run

The post Just-In: Sam Bankman-Fried To Enter Plea Next Week In FTX Fraud Case appeared first on CoinGape.

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Filed under: News - @ December 28, 2022 7:25 pm