Saturday, 25 May, 2024

FTX Founder Makes a Plea in Federal Court


Reading Time: < 1 minute

Sam Bankman-Fried, the former co-founder of the infamous bankrupt crypto exchange FTX, has pleaded not guilty to eight federal charges related to his role in the company’s collapse. If convicted, he could face up to 115 years in prison.

The FTX collapse sent shockwaves throughout the industry. In early November, the exchange was forced to close after a series of withdrawals from investors. According to prosecutors, executives used customer funds for extravagant purchases. They also used the funds to make loans. Some of the money was allegedly used for campaign finance violations and money laundering.

During the hearing, Bankman-Fried did not speak to reporters. Instead, he sat silently in the courtroom. He did not even shake hands with the prosecutor. However, he was surrounded by a large media scrum when he arrived.

The alleged scammer entered the courtroom wearing a dark suit and backpack. He sat silently in the courtroom while his attorney announced his plea.

In addition to the eight criminal counts, Bankman-Fried faces a separate civil fraud case filed by the Securities and Exchange Commission. Both cases are based on accusations that he used the customers’ funds for his own benefit.

The prosecution said that Bankman-Fried was responsible for a “wide-ranging fraud”. He allegedly used the funds to make purchases that were illegal and not authorized. It is also alleged that he illegally commingled these funds.

Federal prosecutors expect to produce evidence for the defense team within four weeks. The government has already accessed many of the materials it will use during the trial.

Click here for more great stories in our Business section.

Click here for our free weekly newsletter that includes our best stories. 

RELATED: DBJ Editor interviews leading cryptocurrency expert on the FTX situation.

0 comments on “FTX Founder Makes a Plea in Federal Court

Leave a Reply

Your email address will not be published. Required fields are marked *

VIDEO: This Week’s Best of our Network

GDPR Compliance

DBJ does not collect data on its visitors.

USABR: Nationally Syndicated Radio Distribution

Contact

Contact  articles@usabusinessradio.net
for more information on articles on this site. bmuyco@usabusinessradio.net for all other information.

Kevin Price’s “New Rich” Book Ready for Pre-order for 99 cents!

The Price of Business Visits with Robert Kiyosaki on 20 Years of “Rich Dad Poor Dad”

The author of the best selling finance book of all time celebrates its 20th anniversary in a series of interviews with Kevin Price on the Price of Business.

Adventures in Quora with Kevin Price

Kevin Price, Editor at Large of Daily Business Journal and host of the nationally syndicated Price of Business show writes frequently at Quora about issues ranging from politics to personality types. His favorite answers are also found at USA Business Radio.

#METOO REHAB

The Best in News and Thoughtful Commentary

All the News. All the Time

PMWorld 360

Archives

NONE OF THE OPINIONS IN DAILY BUSINESS JOURNAL SHOULD BE CONSTRUED AS BEING THOSE OF DAILY BUSINESS JOURNAL

For more information regarding content, see the About page.

Recent Comments

    RSS
    Follow by Email
    YouTube
    YouTube
    LinkedIn
    LinkedIn
    Share