Former CEO of cryptocurrency exchange FTX faces up to 115 years in prison, but pleads not guilty to all eight criminal charges, including money laundering

FTX, which was known as one of the world's largest virtual currency exchanges, effectively went bankrupt in November 2022. Regarding FTX's bankruptcy, it has been pointed out that ` `the founder, Sam Bankman Freed, and other suspects committed fraud, '' and on December 12, 2022, the Bahamas Police announced that Bankman Freed, the founder, was arrested . Bankman Fried has been extradited to the United States and faces a criminal case that could bring him up to 115 years in prison.

FTX founder Sam Bankman-Fried pleads not guilty | CNN Business
https://edition.cnn.com/2023/01/03/business/sam-bankman-fried-plea/index.html

Sam Bankman-Fried Pleads Not Guilty as Trial Is Set for October - WSJ
https://www.wsj.com/articles/sam-bankman-fried-pleads-not-guilty-to-fraud-and-other-offenses-11672774004

FTX is an American-based virtual currency exchange that was the second largest in the world after Binance. However, in November 2022, the company filed for Chapter 11 bankruptcy protection and effectively went bankrupt. Subsequently, cryptocurrency-related media reported that ``FTX had been conducting opaque fund transfers with Alameda Research ,'' a cryptocurrency hedge fund also founded by Bankman Fried,'' and ``Alameda Research was There have been a number of indications of fraudulent activity by FTX, such as ``insider trading taking advantage of the company's relationship with FTX.''

The collapse of the virtual currency exchange 'FTX' is not an accident but a 'crime' - GIGAZINE

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On December 23, 2022, approximately one month after the bankruptcy, Bankman Freed was arrested by Bahamian police, and the next day, Bankman Freed was indicted by the United States Attorney's Office for the Southern District of New York. . Additionally, the U.S. Securities and Exchange Commission has approved charges of securities law violations, including wire fraud, conspiracy to commit wire fraud, securities fraud, conspiracy to commit securities fraud, and money laundering.

Bahamian police arrest Sam Bankman-Fried, founder of bankrupt major virtual currency exchange FTX - GIGAZINE

by Bybit

Bankman Freed has been released on bail for $250 million (approximately 33 billion yen) and is said to be under house arrest at his home in California at the time of writing. Bankman Fried's first trial is scheduled for October 2, 2023, and if he is found guilty on all eight criminal charges, he could face up to 115 years in prison. .

On the other hand, Bankman Freed denies all eight criminal charges and maintains his innocence. In response, John Ray III, who took over as CEO of FTX after Bankman Freed's resignation, said, ``FTX's customer assets are not separated from Alameda Research's assets, and Alameda Research FTX admitted to the problematic behavior by submitting a report stating, ``I used this to conduct margin trading and incurred huge losses.''