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The 30-year-old FTX founder was previously worth an estimated $26 billion and could face up to 115 years in US prisons.
In the United States, former cryptocurrency mogul Sam Bankman-Fried has pleaded not guilty to fraud charges and denied claims he defrauded investors of billions of dollars.
Lawyers for Bankman-Fried, the 30-year-old founder of the now-bankrupt cryptocurrency exchange FTX, were acquitted Tuesday in an arraignment hearing before U.S. District Judge Lewis Kaplan in New York City. claimed.
Prosecutors allege that Bankman-Fried bought properties, made political contributions, and diverted billions of dollars in investment funds to support his cryptocurrency trading hedge fund, Alameda Research. Bankman-Fried was accused of committing large-scale fraud.
Bankman-Fried faces charges including wire fraud and money laundering conspiracy. If convicted, he could face 115 years in prison. Judge Kaplan has set a tentative trial date for him on October 2nd of this year.
Before his chaotic downfall, Bankman-Fried was hailed as a mover and shaker of the emerging digital currency scene, amassing a fortune that once amounted to an estimated $26 billion, and used his wealth to influence US politics. Become an influential donor.
However, in early November, FTX went bankrupt amid concerns about the bankruptcy of cryptocurrency exchanges. Investors raced to get their money out, wiping out Bankman-Fried’s fortune.
Not having enough funds forced FTX to stop processing withdrawals, leaving some investors unsure if they would be able to receive their funds. The company he declared bankruptcy on November 11th.
Bankman-Fried was delivered in December from the Bahamas, where he lives and where FTX is located. He was released on December 22 after posting his $250 million bail, lives at home with his parents in Palo Alto, Calif., and is in electronic custody while awaiting trial. is under surveillance.
“If you’ve been involved in cheating on FTX or Alameda, now’s the time to get ahead of it,” U.S. Attorney Damian Williams said in a statement, urging others involved in the scandal to move forward. We are moving quickly and our patience is not forever.”
Ahead of Tuesday’s arraignment, Williams announced the creation of a federal investigation into FTX commerce, called the Southern District of New York (SDNY) FTX Task Force. Responsible for investigating and prosecuting further wrongdoing resulting from the scandal.
“This is the moment when we all go all out to fight. Until justice is done, we have created the SDNY FTX Task Force to ensure that this urgent work continues, utilizing all of SDNY’s resources and expertise. Start up.
Last month, former Alameda CEO Caroline Ellison and FTX former Chief Technology Officer Gary Wang agreed to work with prosecutors and pleaded guilty to a number of charges, including fraud. .
At a Dec. 19 judicial hearing, Ellison said Bankman-Fried and other FTX executives received a secret multi-billion dollar loan from Alameda Research.
“We created a specific quarterly balance sheet that concealed the extent of Alameda’s borrowings and the billions of dollars in loans Alameda made to FTX executives and affiliates,” Ellison said in Manhattan federal court. told U.S. District Judge Abrams. transcript.
Ellison and Wang have also settled civil lawsuits filed by the US Securities and Exchange Commission and the Commodity Futures Trading Commission.
The implosion of FTX and the increased scrutiny of Bankman-Fried renewed questions about the future of cryptocurrencies, attracting enthusiastic interest, skepticism and accusations of fraud from investors large and small.
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