SBF will plead not guilty to fraud charges

Sam Bankman-Fried (SBF) is the founder of the recently collapsed cryptocurrency exchange FTX. He will plead not guilty to the fraud and other charges against him at his next court appearance. Bankman-Fried is expected to plead not guilty in Manhattan on Tuesday, January 3, according to a Wall Street Journal report, citing a person with knowledge of the situation.

A classic defense in the United States

This acquittal was widely expected. In the US court system, defendants often initially plead not guilty. Defendants are free to amend their plea at a later date. Indeed, SBF was arrested in the Bahamas in December 2022 after US prosecutors formally filed criminal charges against him. After an uncertain week, the FTX boss has finally been extradited to the United States to face a slew of criminal charges.

The Southern District of New York, which is investigating Bankman-Fried and the collapse of FTX and its Alameda sister company, has charged SBF with eight criminal counts, including wire fraud and conspiracy to embezzle clients. Separately, the Securities and Exchange Commission (SEC) accused SBF of orchestrating a scheme to defraud investors of FTX shares. Before his arrest, the SBF attributed the nearly $10 billion hole in FTX funds to sloppy accounting and a bank account problem.

Current general situation about SBF

The SBF told the media that he did not commit fraud. In contrast, last week former Alameda Research CEO Caroline Ellison agreed to plead guilty to seven misdemeanors. Those offenses include charges of wire fraud, securities fraud and money laundering. Gary Wang is the former CTO of FTX. He pleaded guilty to the criminal charges. Both are cooperating with federal investigators.

For now, SBF is under house arrest at the Bankman-Fried family home in Palo Alto. He was released from jail last week after posting a $250 million bond in a New York court. SBF was also charged with conspiracy to defraud the United States. Having financed the Democratic Party, he is indeed accused of violating campaign finance laws.

Prosecutors allege that SBF defrauded the Federal Election Commission starting in 2020. It allegedly conspired with others to make illegal contributions to candidates. The former CEO of FTX was the second largest donor to the Democratic Party, after billionaire George Soros. These donations were mostly made during the 2021-2022 election cycle, giving $39,884,256 to Democrats. Elon Musk even hinted that he could have donated up to $1 billion to Democrats.

Source: Crypto news

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Krull avatar
Krull

To the angel of the middlemen of the current monetary system, I oppose DeFi, digital assets and the metaverse. Lawyer in Luxembourg, I am interested in cryptocurrency investment funds.

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