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As reported by Reuters, next week Sam Bankman-Fried will officially plead guilty to criminal charges of defrauding investors and stealing client funds.
Another court hearing in the case of the formerFTX CEO Sam Bankman-Fried will be presided over by U.S. District Judge Lewis Kaplan in Manhattan federal court on the afternoon of January 3.
Prosecutors accuse Bankman-Fried ofyears of “fraud of epic proportions,” using customer deposits to support hedge fund Alameda Research, purchase real estate and make political donations. The founder of FTX faces up to 115 years in prison.
As the media learned from sources close to the proceedings, Sam Bankman-Fried is expected to formally plead guilty to the charges next week.
Let us remind you that before his arrest on December 12Bankman-Fried acknowledged shortcomings in FTX's risk management but said mistakes made through misunderstanding should not expose him to criminal liability.
Previously former CEO of AlamedaCaroline Ellison and former FTX CTO Gary Wang pleaded guilty to their roles in the collapse of FTX and agreed to cooperate with prosecutors. On December 22, Sam Bankman-Fried was released on bail in the amount of $250 million.
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