According to a report published by Reuters on December 28 that cited court records, former CEO of the FTX cryptocurrency exchange Sam Bankman-Fried is scheduled to appear in court on the afternoon of January 3 to enter a plea on two counts of wire fraud and six counts of conspiracy related to the failure of the FTX cryptocurrency exchange.
In Manhattan, Bankman-Fried is scheduled to appear in front of District Judge Lewis Kaplan. After the initial judge on the case, Ronnie Abrams, was forced to disqualify herself because of links between FTX and the Davis Polk & Wardwell law firm, where her husband is a partner, Judge Kaplan was appointed to handle the case on December 27.
In the year 2021, the company offered consulting services to FTX.Kaplan is well-known for his unpretentious demeanor and his skillful management of the proceedings that take place in the courtroom. In 1994, President Bill Clinton of the United States nominated Kaplan for the position of Supreme Court Justice.
Before his arrest, Bankman-Fried expressed his disbelief on multiple occasions that he should be held criminally liable for the actions he took while serving as CEO of FTX. He claimed that the “unknowingly commingled funds” of customers of Alameda and FTX were the result of a simple accounting error that he committed.
“I don’t believe any such comments to be believable,” John Ray, who succeeded Bankman-Fried as CEO of FTX, testified during a hearing held by the Financial Services Committee of the United States House of Representatives.
Bankman-Fried is presently under house arrest in California with his parents as he awaits the outcome of his appeal of his $250 million bail, which includes a portion of the equity in his parents’ home.
Evaluation and therapy for mental health disorders as well as substance misuse were among the other prerequisites for Bankman-release Fried’s from custody.
Caroline Ellison and Gary Wang, both members of his inner circle at FTX and the related trading firm Alameda Research, have pleaded guilty to the charges against them and have agreed to cooperate with the prosecution, according to an announcement made by Damian Williams, the United States Attorney for the Southern District of New York, on December 22.
Nishad Singh, a former director of engineering at Alameda Research, and Sam Trabucco, a former co-CEO of Alameda Research alongside Larry Ellison who resigned on August 24, have not been charged as of this time. Bankman-close Fried’s allies Nishad Singh and Sam Trabucco were both fired on August 24.