Founder and former CEO of the collapsed exchange FTX, SBF is likely to plead not guilty, next week, to the charges against him as per a report by Wall Street Journal.
One of the participants stated that Bankman-Fried would probably show up in person in New York on January 3 to enter his plea. Earlier this month, the U.S. attorney’s office for the Southern District of New York accused the former billionaire of engaging in illegal behaviour. This caused the collapse of the crypto exchange and claimed he was in command of one of the largest financial frauds in American history.
SBF’s associate, Caroline Ellison, former CEO of Alameda research, FTX’s sister company, and Gary Wang, former CTO of FTX have accepted their faults. Thus, SBF’s not pleading guilty is contrasting to this. However, this move was widely expected as before his arrest he blamed faulty records and bank accounts for the illegal transfer of funds to Alameda Research.
Also read: FTX Founder SBF Single Handedly Funded $760,000 To This Political Organization
After making an appearance in a New York federal court following his extradition from the Bahamas, SBF was released on a 250 million USD bond and given permission to remain in his parents’ Palo Alto, California residence.
How FTX shook the cryptosphere?
The developing crypto industry has been shaken by the failure of FTX and its sister firm Alameda. Authorities claim that SBF used money from FTX’s customers to cover the costs and debts of his trading company Alameda Research. Both businesses declared bankruptcy in November. Individual traders who trusted FTX with their cryptocurrency are probably going to have to wait for bankruptcy proceedings before they can get any of their money back.
Allegations against SBF
Prosecutors are arguing that SBF made illegal transactions right from the year 2019, along with other associates. He has been lying to investors and customers about Alameda’s financial situation. He has also made huge donations to the democratic party in the U.S. which is considered illegal.
Also read: FTX To Return Customer Funds In February, But There’s A Catch
In recent years, he and his associates gave more than 70 million USD to political campaigns. Prior to the 2022 midterm elections, he personally donated 40 million USD, as per a report by Wall Street Journal.
The SEC and the Commodity Futures Trading Commission have also made accusations against SBF. In total, SBF is facing 8 different charges and if proven guilty can land up to 100 years imprisonment.