FTX cryptocurrency exchange founder, Sam Bankman-Fried, is set to enter a plea of not guilty to a new set of criminal charges on Thursday. The charges include accusations of conspiring to violate campaign finance laws and bribery of Chinese authorities. Bankman-Fried had previously pleaded not guilty to eight charges of fraud and conspiracy, alleging the misappropriation of billions in FTX customer funds to cover losses at Alameda Research, his hedge fund.
A source familiar with the matter has informed Reuters that Bankman-Fried plans to plead not guilty to the new 13-count indictment. The mounting charges increase the pressure on Bankman-Fried, who could face a lengthy prison sentence if convicted. The trial is scheduled to commence on October 2, and Bankman-Fried was taken into custody in December following a wave of customer withdrawals and the collapse of FTX due to concerns about funds commingling between the exchange and Alameda.
New Anti-Bribery Charges and Illicit Political Donations
The preliminary indictment that was handed down by the United States Attorney’s Office in Manhattan provided very few specifics regarding the alleged fraud. The former billionaire wrote an interesting blog post after his arrest in which he admitted that there was inadequate risk management at FTX but stated that he did not take any assets.
Late in the month of February, prosecutors issued an additional 12-count indictment that elaborated on the fraud charges and accused Bankman-Fried of illegally contributing tens of millions of dollars to U.S. political campaigns using straw donors as part of a plot to purchase influence in Washington.
Prosecutors have recently revealed yet another indictment accusing Sam Bankman-Fried of conspiring to violate anti-bribery laws. According to the indictment, Bankman-Fried is alleged to have orchestrated a payment of $40 million to Chinese authorities to regain access to $1 billion in cryptocurrency in Alameda accounts that had been frozen.
Three former members of Bankman-Fried’s inner circle, former Alameda CEO Caroline Ellison, former FTX technology chief Zixao “Gary” Wang, and former FTX engineering director Nishad Singh, have already pleaded guilty and agreed to assist prosecutors. Bankman-Fried, who is currently on a $250 million bond, is under house arrest at his parents’ Palo Alto, California, home while awaiting trial. Recently, U.S. District Judge Lewis Kaplan modified Bankman-Fried’s bail package to prevent him from tampering with witnesses.
