Sam Bankman-Fried will plead not guilty to fraud

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Sam Bankman-Fried will plead not guilty to fraud
Sam Bankman-Fried will plead not guilty to fraud

Sam Bankman-Fried, the founder and former CEO of FTX, will plead not guilty to fraud at a hearing involving him, as reported by the Wall Street Journal. SBF is accused of fraud and money laundering for the fraudulent bankruptcy of its cryptocurrency trading platform.

According to Bloomberg, SBF has had at least four meetings with senior White House officials this year to try to influence pending cryptocurrency legislation and strengthen its ties in Washington. Sam Bankman-Fried, currently free on $250 million bail, will plead not guilty in court to alleged financial fraud related to the failed exchange and Alameda.

SBF was arrested in the Bahamas at the request of the US government, on suspicion of defrauding investors and embezzling funds held on the FTX crypto exchange. Following a court hearing on Dec. 22, SBF was released on bail and is scheduled to appear in court Jan.

3 before District Judge Lewis Kaplan in Manhattan. SBF is expected to plead not guilty to the criminal charges during the hearing, Reuters reported. On Dec. 13, the SEC charged the former FTX CEO with violating the anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.

Sam Bankman-Fried released on $250 million bail

The 30-year-old ex-billionaire, once tipped as a possible future Warren Buffett, will be subjected to electronic monitoring. Days before FTX's bankruptcy, one of Sam Bankman-Fried's closest executives tipped off Bahamian authorities about possible misuse of exchange funds.

Manhattan Attorney Damian Williams said at a news conference Tuesday that the FBI, SEC and CFTC have been working around the clock to figure out the details of one of the largest financial frauds in American history. He is also charged with conspiracy to commit commodity fraud, conspiracy to commit securities fraud, and conspiracy to defraud the United States and trespassing on campaign finance, all of which carry a maximum penalty of five years.

US Attorney Damian Williams announced in recent days that two key figures in the case, Alameda Research CEO Caroline Ellison and FTX cofounder Gary Wang, have pleaded guilty to charges related to the collapse of FTX and are collaborating with the authority.

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