Advertisement Banner
  • Home
  • News
  • Types
  • Contact
No Result
View All Result
  • Home
  • News
  • Types
  • Contact
No Result
View All Result
No Result
View All Result
Home News

Bankman-Fried arrives in court for FTX fraud arraignment

admin by admin
January 3, 2023
in News


Sam Bankman-Fried arrived in a federal courtroom in Manhattan on Tuesday for his arraignment, where he is expected to plead not guilty to criminal charges that he cheated investors in his now-bankrupt FTX cryptocurrency exchange. Bankman-Fried is accused of looting billions of dollars in FTX customer deposits to support his Alameda Research hedge fund, buy real estate and make millions of dollars in political contributions, in what prosecutors have called a fraud of epic proportions.

A clean-shaven Bankman-Fried entered Manhattan federal court wearing a blue suit, white shirt and dotted blue tie while carrying a backpack at around 12:40 p.m. EST (1740 GMT). The arraignment is before U.S. District Judge Lewis Kaplan.

A person familiar with the matter told Reuters last week that Bankman-Fried would plead not guilty. A lawyer for Bankman-Fried did not reply to a request for comment. It is common for criminal defendants to initially plead not guilty. They may change their pleas later.

Bankman-Fried could face up to 115 years in prison if convicted. The Massachusetts Institute of Technology graduate rode a boom in the value of bitcoin and other digital assets to build a net worth of an estimated $26 billion and become an influential political donor in the United States.

But FTX collapsed in early November after a wave of withdrawals and declared bankruptcy on Nov. 11, wiping out Bankman-Fried’s fortune. He later said he had $100,000 in his bank account. Bankman-Fried was extradited last month from the Bahamas, where he lived and where the exchange was based.

Since his release on bond on Dec. 22, Bankman-Fried has been subject to electronic monitoring and required to live with his parents, Joseph Bankman and Barbara Fried, both professors at Stanford Law School in California. The prosecution case was strengthened by last month’s guilty pleas of two of Bankman-Fried’s closest associates.

Caroline Ellison, who was Alameda’s chief executive, and Gary Wang, FTX’s former chief technology officer, pleaded guilty to seven and four criminal charges, respectively, and agreed to cooperate with prosecutors. Bankman-Fried, Ellison and Wang were also sued by the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. Ellison and Wang settled those civil cases.

FTX’s new chief executive, John Ray, known for his work on energy company Enron Corp’s bankruptcy, has said FTX was run by “grossly inexperienced” and unsophisticated people.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)



Source link

Tags: BahamasBankman-FriedBankman-Fried'sCaroline EllisonEllisonEnron Corp'sFriedJohn RayKaplanManhattanMassachusetts Institute of TechnologySam Bankman-FriedStanford Law SchoolU.S.Wang
Previous Post

Graft case against GVK firm, Mumbai International Airport transferred to lower court

Next Post

WRAPUP 10-Ukraine says Russia plans new mobilisation to ‘turn tide of war’

Next Post

WRAPUP 10-Ukraine says Russia plans new mobilisation to 'turn tide of war'

Recommended

The top challenges of out of gauge transportation

3 months ago

India’s population declining due to education, social awareness: Jaishankar

5 months ago

© 2022 Logistics News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • News
  • Types
  • Contact

Newsletter Sign Up.

No Result
View All Result
  • Home
  • News
  • Types
  • Contact

© 2022 Logistics News Hubb All rights reserved.