Sam Bankman-Fried Set To Enter A Plea On Fraud And Embezzlement Charges In FTX Case

Sam Bankman-Fried, the former CEO of cryptocurrency exchange FTX, will reportedly plead to criminal charges alleging that he defrauded investors and misused billions of dollars in customer funds.

The 30-year-old is scheduled to be arraigned on Jan. 3, 2023, in front of U.S. District Judge Lewis Kaplan in a Manhattan federal courtroom, Reuters reported.

Kaplan was assigned to the case after the original judge recused herself due to a conflict of interest, as her husband's law firm had previously advised FTX.

Also read: FTX Customers File Lawsuit Seeking Priority Repayment: What Investors Need To Know

Prosecutors have accused Bankman-Fried of engaging in a long-term "fraud of epic proportions" by using customer deposits to support his hedge fund Alameda Research, purchase real estate, and make political contributions.

He is charged with two counts of wire fraud and six counts of conspiracy, including money laundering and campaign finance violations, and if convicted could face several decades in prison.

Bankman-Fried admitted that there were issues with risk management at FTX before his arrest on Dec. 12, but he maintained that he did not believe he was criminally liable.

Two of his associates, Caroline Ellison and Gary Wang, have already pleaded guilty to their roles in the collapse of FTX and agreed to assist prosecutors.

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