Business

FTX founder Bankman-Fried claims trial to US fraud charges

This comes after two of his former associates agree to cooperate with prosecutors

Updated 3 years ago · Published on 04 Jan 2023 9:26AM

FTX founder Bankman-Fried claims trial to US fraud charges
Sam-Bankman-Fried, the disgraced founder of cryptocurrency exchange FTX, faces two counts of conspiring to launder money and violating campaign finance laws in a Manhattan federal court in the United States. – AFP pic, January 4, 2023

NEW YORK – FTX founder Sam-Bankman-Fried pleaded not guilty in the multibillion-dollar fraud case against him in a Manhattan federal court today, reported tca/dpa.

The 30-year-old claimed trial to two counts of conspiring to launder money and violating campaign finance laws.

Bankman-Fried is accused of steering billions of dollars that flowed through his cryptocurrency exchange platform, FTX, where users could trade currencies, to his crypto-trading firm, Alameda Research.

The firm, valued at more than US$30 billion (RM132 billion) at its peak, had filed for bankruptcy protection in the United States on November 11.

Bankman-Fried’s plea comes after his top lieutenants – including his ex-girlfriend – pled guilty to federal charges and agreed to cooperate against him.

Carolyn Ellison, 28, was Bankman-Fried’s former girlfriend and chief executive of Alameda Research. The other executive who flipped, Gary Wang, 29, was the co-founder of FTX. Both have admitted to bank, securities, and commodities fraud.

As Bankman-Fried entered his plea, federal prosecutors in Manhattan announced a new unit dedicated exclusively to uncovering wrongdoing in what they described as one of the largest cases of fraud in American history.

“The Southern District of New York is working around the clock to respond to the implosion of FTX. It is an all-hands-on-deck moment,” said US attorney Damian Williams.

“We are launching the SDNY FTX Task Force to ensure that this urgent work continues, powered by all of SDNY’s resources and expertise, until justice is done.”

Bankman-Fried has been out on a US$250 million bond – the largest-ever pretrial bond for any defendant – since his initial December 22 appearance after federal authorities extradited him from the Bahamas, where FTX was headquartered. – Bernama, January 4, 2023

Related News

Malaysia / 1mth

Guan Eng, wife, businesswoman to stand trial for corruption linked to RM11.6m project

Malaysia / 2mth

Online fraud: Number of cases, losses continue to rise – deputy minister

Malaysia / 2mth

US charges three Malaysian state telecoms officials for alleged multimillion-dollar fraud

Malaysia / 2mth

Court orders Maybank to pay RM166,000 to customer due to illegal transactions

Malaysia / 4mth

Op Viking: Victor Chin was once arrested for money laundering

Malaysia / 5mth

RM1b investment fraud: Former minister among those questioned by MACC

Spotlight

Malaysia

Sarawak schools told to halt outdoor activities as haze pushes air quality into unhealthy range

World

Indonesia haze forces schools to close as wildfires intensify amid severe dry season

Malaysia

PN walkout over Tabung Haji debate a political misstep, says analyst

By Alfian Z.M. Tahir

Malaysia

51 witnesses to testify at inquest into death of 10-year-old boy found unconscious in school toilet

Malaysia

Female student arrested for allegedly hurting classmate with kerambit at school

World

Colombia quake death toll hits 111 as rescue teams race to find survivors

World

Trump secretly switched to third aircraft in Türkiye over Iran assassination threat

Malaysia

Anwar questions PN’s priorities after Tabung Haji RCI walkout

Malaysia

MACC, police probing TH after RCI findings as govt warns no one will be spared

By Alfian Z.M. Tahir

You may be interested

Business

Jobless numbers rise despite unemployment rate holding at 3% - DOSM

Business

Oil price extends gains as Hormuz uncertainty keeps energy markets cautious

Business

Appellate Court rejects Ricky Wong’s appeal, upholds RM169.2m asset freeze

Business

Oil holds above US$82 as Trump demands cloud Strait of Hormuz reopening