Sam Bankman-Fried pleads guilty in FTX fraud case

Sam Bankman-Fried, the once-acclaimed CEO of cryptocurrency exchange FTX, is expected to plead guilty to multiple criminal charges next week. Bankman-Fried is accused of defrauding investors and siphoning off billions of dollars in customer funds, according to court documents.

SBF case handled by Judge Kaplan in Manhattan

The CEO’s crypto empire appears to have been built on lies and deception. is the ‘ftx wunderkind’ due in court on January 3, 2023.

According to court records, the alleged scammer is scheduled to be tried by US District Judge Lewis Kaplan in Manhattan federal court on the afternoon of Jan. 3, 2023. Kaplan was appointed to the case on Tuesday, after the initial judge backed out because his partner’s law firm had counseled FTX prior to his passing.

Authorities claim Bankman-Fried perpetrated a multi-year fraud by siphoning off client funds to finance Alameda Research, which is not legal. SBF also bought luxury real estate and donated to political campaigns including the 2020 presidential campaign of current US President Joe Biden.

SBF is also charged with two counts of wire fraud, and could face a lengthy prison sentence. Of course, as Biden’s second largest presidential campaign donor – the SBF could get a big pardon!

SBF affiliates admit blame in relation to FTX collapse

Carolyn Ellison, former Alameda CEO, and Gary Wang, former FTX chief technology officer, were two of his associates who pleaded guilty to involvement. the demise of ftx and agreed to assist the authorities.

Bankman-Fried was allowed to live with her parents in Palo Alto, California, where she is a professor at Stanford Law School, and was released on December 22 on $250 million bond. They are being viewed electronically.

According to John Ray, the company’s new CEO, FTX lost $8 billion in client funds while being run by “grossly inexperienced, non-sophisticated individuals”. Bankman-Fried said FTX had poor risk management prior to his arrest on December 12, but insisted he didn’t think he was legally responsible,

With bankruptcy proceedings underway and the future of FTX uncertain, it remains to be seen how this saga will ultimately end.

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