All posts tagged: FTXs

FTX’s Sam Bankman-Fried Pleads Not Guilty to Fraud, Trial Set to Begin in October

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FTX co-founder Sam Bankman-Fried pleaded not guilty Tuesday to US criminal fraud charges over the spectacular collapse of his crypto exchange. The 30-year-old former digital currency billionaire, who is out on bail, entered the plea in federal court in Manhattan before New York judge Lewis Kaplan. FTX and its sister trading house Alameda Research went bankrupt in November, dissolving a virtual trading business that at one point had been valued by the market at $32 billion (roughly Rs. 2,65,300 crore). The US has charged Bankman-Fried with conspiracy, wire fraud, money laundering and election finance violations. Prosecutors allege he cheated investors and misused funds that belonged to FTX and Alameda Research customers. Bankman-Fried pleaded not guilty to all eight counts against him — five of which carry a maximum sentence of 20 years in prison each. Judge Kaplan set a tentative date of October 2 for the start of his trial. After its founding in 2019, FTX soared to become a leading player in the crypto-currency world. Bankman-Fried appeared on the covers of magazines, drew in huge …

FTX’s Sam Bankman-Fried May Enter Guilty Plea on Cheating Charges

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Sam Bankman-Fried is expected on Tuesday to enter a plea of not guilty to criminal charges that he cheated investors and looted billions of dollars at his now-bankrupt FTX cryptocurrency exchange, according to a source familiar with the matter. Bankman-Fried is accused of illegally using FTX customer deposits to support his Alameda Research hedge fund, buy real estate and make millions of dollars in political contributions. He is scheduled to appear at 2pm EST on Tuesday (12:30am IST on Wednesday) before US District Judge Lewis Kaplan in Manhattan to enter a plea. A lawyer for Bankman-Fried did not immediately reply to a request for comment. It is not unusual for criminal defendants to initially plead not guilty. Defendants are free to change their plea at a later date. Bankman-Fried has been free on $250 million (roughly Rs. 2,000 crore) bond following his extradition last month from the Bahamas, where he lived and where the exchange was based. Since his release, Bankman-Fried has been subject to electronic monitoring and required to live with his parents, both professors …

FTX’s Sam Bankman-Fried Denied Bail in the Bahamas, Chances of Extradition to the US Increased, Experts Say

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FTX founder Sam Bankman-Fried’s failure to secure release on bail in the Bahamas on Tuesday increases the likelihood that he will consent to extradition to the United States to face fraud charges, legal experts said. A judge ordered Bankman-Fried to be held at the Bahamas Department of Corrections until at least February 8, citing his “great” risk of flight after New York federal prosecutors unveiled charges against him over the collapse of his once high-flying crypto exchange, FTX. Before his bail was denied, Bankman-Fried’s lawyer said his client was not waiving his right to extradition proceedings. If he fights removal, the process could involve up to a year or more of hearings and appeals with little hope of success in the end, experts said. The facility where Bankman-Fried is being held is also known as Fox Hill Prison. A lawyer for Bankman-Fried did not immediately respond to a request for comment. Attorneys who specialise in extradition say time locked up overseas often encourages defendants to consent to being transferred to their home countries. “The extradition …

FTX’s Sam Bankman-Fried Charged by US SEC For Defrauding Investors Out of Billions of Dollars

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The US Securities and Exchange Commission charged disgraced cryptocurrency tycoon Sam Bankman-Fried on Tuesday with defrauding customers out of billions of dollars, a day after he was arrested in the Bahamas at the request of the United States. “Today we are holding Mr. Bankman-Fried responsible for fraudulently raising billions of dollars from investors in FTX and misusing funds belonging to FTX’s trading customers,” the exchange said in a statement. “We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” said SEC Chair Gary Gensler. The statement added investigations “as to other securities law violations and into other entities and persons relating to the alleged misconduct are ongoing.” Bankman-Fried’s FTX platform was plugged by celebrities in advertising campaigns, and the cyber whiz kid became a regular presence in Washington, where he donated tens of millions of dollars in political contributions. But after reaching a valuation of $32 billion, FTX’s implosion was swift following a November 2 report on …

FTX’s Sam Bankman-Fried to Testify Before US House Committee Next Week

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FTX’s Sam Bankman-Fried is set to testify before a US House committee on Tuesday, the cryptocurrency exchange’s founder and the congressional panel said on Friday, as regulators investigate his role in the wake of its collapse. The chair of the House of Representatives Committee on Financial Services, Maxine Waters, told Reuters on Thursday that she was prepared to subpoena Bankman-Fried if he did not agree to appear before the panel, which is holding a hearing as part of its probe into FTX. In a statement late on Friday, the panel said it would hear from newly appointed FTX CEO John Ray and from Bankman-Fried, FTX’s founder and former CEO, on Tuesday. “I still do not have access to much of my data — professional or personal. So there is a limit to what I will be able to say, and I won’t be as helpful as I’d like,” Bankman-Fried said on Friday on Twitter. “But as the committee still thinks it would be useful, I am willing to testify on the 13th,” he added. The …