In order to appear in court on Tuesday, Sam Bankman-Fried, the CEO of the bankrupt crypto exchange FTX, who had been on $250 million bail over two weeks earlier, returned to New York.
CNBC reported on January 3rd that In a federal court in New York, SBF pleaded not guilty to allegations that he used customer deposits at FTX to fund his other firm Alameda Research, to buy properties and other things.
According to the statement:
The onetime crypto billionaire was indicted on charges of conspiracy to commit wire fraud and securities fraud, individual charges of securities fraud and wire fraud, money laundering, and conspiracy to avoid campaign finance regulations.
However, Lewis Kaplan, the judge in the case, set a trial date of October 2nd. If convicted, SBF could face more than 100 years in prison. Two of SBF’s colleagues have already pleaded guilty and are assisting with the investigation, which has had a widespread impact on the cryptocurrency industry.
The prosecution anticipated finishing up most of its discovery in the upcoming weeks, Assistant U.S. Attorney Danielle Sassoon told the court.
Moreover, SBF’s attorneys recently submitted a request asking for the anonymity of the identity of the two people who had made bail and secured his release.
Additionally, Judge Kaplan approved SBF’s request to have the names of the two other co-signers—in addition to his parents—sealed. His attorneys contended that disclosing the co-signers’ identities raised security and privacy issues.
The Launch Of FTX Task Force
As part of their ongoing investigation into Bankman-Fried and the collapse of FTX, federal prosecutors also announced the formation of a new task force to recover assets for victims, according to a CNBC report.
In a statement, U.S. Attorney Damian Williams said that the Southern District of New York (SDNY ) is working around the clock to address the collapse of FTX. “It is an all-hands-on-deck moment,” Williams added.
To make sure that this essential effort continues, supported by all of SDNY’s resources and experience until justice is served, he added, they are establishing the SDNY FTX Task Force.
According to the statement, the task group is led by Andrea Griswold, Williams’ senior deputy. It will include attorneys from the Securities and Commodities Fraud, Public Corruption, Money Laundering, and Transnational Criminal Enterprises sections.
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