2 - 3 minute read
Sam Bankman-Fried (SBF), the founder and former CEO of the cryptocurrency exchange FTX, is said to have reached a deal with the authorities in the United States regarding his involvement in a scheme that resulted in the loss of billions of dollars’ worth of customer funds and defrauded investors of millions of dollars. On January 3, 2023, Reuters reports that SBF will appear in a federal court in New York to file a plea before U.S. District Judge Lewis Kaplan.
SBF was charged with two charges of wire fraud and six counts of conspiracy to commit wire fraud after being extradited from the Bahamas and brought to the United States. Among the accusations leveled against the defendant are charges of money laundering and allegations of attempted violations of campaign finance laws. Reports indicate that SBF was a prominent political donor in the United States, donating millions of dollars to both the Democratic Party and the Republican Party.
Caroline Ellison, who was the Chief Executive Officer of FTX’s trading arm, Alameda Research, and Gary Wang, who was the Former Chief Technology Officer of FTX, have both already pleaded guilty and agreed to pay large fines in connection with the case. Although additional details have not been revealed at this time, it is anticipated that SBF will agree to a contract that is analogous to the one being proposed.
The failure of FTX was one of the worst in recent financial history, and the industry is still reeling from the effects of its collapse.