Bankman-Fried to Enter a Plea Next Week
- Bankman-Fried was released last week on a $250 million bond and allowed to stay with his parents in California.
- The 30-year-old was charged with several crimes, including wire fraud and six counts of conspiracy. He faces a lengthy sentence if found guilty.
- Bankman-Fried will be arraigned on January 3, 2023, before U.S. District Judge Lewis Kaplan.
Former FTX CEO Sam Bankman-Fried is expected to enter a plea early next week, according to a Reuters report. The 30-year-old disgraced executive will be arraigned on January 3, 2023, in a Manhattan federal court, where sources believe he will enter a plea to criminal charges. The former billionaire is accused of looting customer funds, leading to the collapse of the FTX exchange.
Bankman-Fried’s decision to enter a plea comes days after two of his close friends and allies in the FTX saga pleaded guilty to their involvement and offered to assist prosecutors. Former Alameda CEO Caroline Ellison and former FTX Chief Technology Officer Gary Wang escaped heavy punishment by cooperating with prosecutors. Ellison and Wang also signed consent agreements with the Commodity Futures Trading Commission. Both parties also reached a settlement with the Securities and Exchange Commission.
However, Bankman-Fried will most likely have a tougher fate than his friends. District Judge Lewis Kaplan was surprisingly assigned Bankman-Fried’s case on Tuesday after the previous judge recused herself following a previous association with FTX. Judge Kaplan is known for handling high-profile cases, including a sexual abuse lawsuit against Prince Andrew and defamation lawsuits against former U.S. President Donald Trump.
Prosecutors claim that Bankman-Fried committed years-long “fraud of epic proportions” by using client funds to finance his Alameda Research hedge fund, live lavishly, and give to political campaigns. The FTX founder is accused of two counts of wire fraud and six counts of conspiracy, including conspiring to launder money and violate campaign finance laws. If found guilty, Bankman-Fried faces a lengthy prison sentence.
Bankman-Fried was granted bail last week and allowed to live with his parents in California. The FTX founder was also subject to severe conditions, including electronic monitoring and travel bans. Although Bankman-Fried has admitted to mismanaging user funds, he does not believe he is criminally liable for what he has been charged with.
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