NEW YORK, Dec 28 (Reuters) – Sam Bankman-Fried is predicted to enter a plea subsequent week to felony expenses he defrauded traders and looted billions of {dollars} in buyer funds at his failed FTX cryptocurrency alternate.
The 30-year-old is predicted to be arraigned on the afternoon of Jan. 3, 2023, earlier than U.S. District Choose Lewis Kaplan in Manhattan federal courtroom, courtroom data on Wednesday confirmed.
Kaplan was assigned to the case on Tuesday, after the unique choose recused herself as a result of her husband’s legislation agency had suggested FTX earlier than its collapse.
Prosecutors have accused Bankman-Fried of participating in a years-long “fraud of epic proportions,” through the use of buyer deposits to help his Alameda Analysis hedge fund agency, purchase actual property and make political contributions.
Bankman-Fried is charged with two counts of wire fraud and 6 counts of conspiracy, together with to launder cash and commit marketing campaign finance violations, and if convicted may spend many years in jail.
Earlier than his Dec. 12 arrest, Bankman-Fried acknowledged risk-management failures at FTX, however mentioned he didn’t imagine he was criminally liable.
Two of his associates, former Alameda chief govt Caroline Ellison and former FTX chief know-how officer Gary Wang, have pleaded responsible over their roles in FTX’s collapse and agreed to cooperate with prosecutors.
A lawyer for Bankman-Fried didn’t instantly reply to requests for remark.
Bankman-Fried was launched on Dec. 22 on a $250 million bond and ordered to stick with his mother and father in Palo Alto, California, the place they educate at Stanford Legislation Faculty. He’s topic to digital monitoring.
FTX filed for chapter safety on Nov. 11. Its new chief govt, John Ray, instructed Congress on Dec. 13 that the alternate misplaced $8 billion of buyer cash whereas being run by “grossly inexperienced, non-sophisticated people.”
Reporting by Jonathan Stempel in New York
Modifying by Matthew Lewis
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