Republican Representative French Hill of Arkansas shares his reaction to the FTX collapse in The Evening Edit.
FTX founder Sam Bankman-Fried is reportedly to plead not guilty to federal fraud and money laundering charges in federal court in New York on Tuesday after releasing a $250 million bond issue.
The 30-year-old cryptocurrency entrepreneur’s next court appearance is scheduled for Tuesday in U.S. District Court in Manhattan, where the Wall Street Journal first reported on Friday Bankman-Fried is likely to appear in person for a not-guilty plea.
This comes less than two weeks after Bankman-Fried was released from federal custody when his parents agreed to sign a $250 million personal acknowledgment statement and electronically monitor him at their home in Palo Alto, California. while awaiting trial.
Assistant US Attorney Nicolas Roos said prosecutors agreed to what is believed to be the largest federal pre-trial bail because Bankman-Fried, who was being held in the Bahamas, agreed to extradition to the US
BAHAMAS SECURITIES COMMISSION SAYS IT HAS $3.5 BILLION IN FTX ASSETS
FTX founder Sam Bankman-Fried exits Manhattan Federal Court following his charges and bail hearing on December 22, 2022 in New York City. (David Dee Delgado/Getty Images/Getty Images)
The Justice Department alleges that Bankman-Fried used billions of dollars in FTX client funds for his personal use, to make investments and millions of dollars in political donations to federal political candidates and committees, and to repay billions of dollars in loans that Alameda Research, a cryptocurrency hedge fund he also founded. The federal indictment was unsealed on December 13.
FTX founder Sam Bankman-Fried exits Manhattan Federal Court following his charges and bail hearing on December 22, 2022 in New York City. (David Dee Delgado/Getty Images/Getty Images)
Bloomberg noted that Bankman-Fried’s expected decision is common, as defendants often plead not guilty to an indictment to give them time to consider possible defenses, or to agree on lighter sentences with prosecutors if they choose to later reverse their lawsuits. However, the Justice Department has already sought guilty pleas from Caroline Ellison, former executive director of Alameda Research, and Gary Wang, former chief technology officer of FTX, on similar federal allegations against Bankman-Fried. And both Ellison and Wang are working with federal agencies.
FTX founder Sam Bankman-Fried exits Manhattan Federal Court following his charges and bail hearing on December 22, 2022 in New York City. (Michael M. Santiago/Getty Images/Getty Images)
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According to the Journal, Bankman-Fried and his associates have contributed more than $70 million to election campaigns in recent years. Bankman-Fried, the second largest Democratic mega-donor behind George Soros, personally made $40 million in donations ahead of the 2022 midterm elections.