Sam Bankman-Fried to be arraigned in New York on Jan. 3
Editor’s Note: With so much volatility in the market, stay on top of the daily news! Catch up in minutes with our quick roundup of today’s must-read news and expert opinions. Register here!
(Kitco News) – Former FTX CEO Sam Bankman-Fried will appear before a judge in New York next week to plead and face criminal charges. Bankman-Fried is scheduled to be arraigned Jan. 3 before U.S. District Judge Lewis Kaplan in Manhattan federal court, according to court records released Wednesday.
Kaplan was appointed to the case only yesterday after Ronnie Abrams, the judge originally chosen to preside over the trial, was forced to recuse herself when it emerged that her husband’s law firm Davis Polk & Wardwell had advised FTX in 2021 when SBF was still CEO.
Bankman-Fried was released on bail after his first appearance before a US judge on December 22. He was released on $250 million bond and is confined to his parents’ home in Palo Alto, Calif., which is also supporting bail. . The bail decision came just 14 hours after SBF hit US soil after being extradited from the Bahamas.
FTX and Alameda Research, along with about 130 other corporate entities, filed for Chapter 11 bankruptcy on November 11. Bankman-Fried also tendered his resignation at that time, with John Ray III being named as the new CEO of FTX Group.
Former FTX and Alameda senior executives Gary Wang and Caroline Ellison have already pleaded guilty to fraud and are cooperating with authorities. US Attorney Damian Williams posted one short notice with video on Dec. 21 announcing the guilty pleas of Ellison, the former CEO of Alameda Research, and Wang, who co-founded FTX with Sam Bankman-Fried.
“Both Ms. Ellison and Mr. Wang have pleaded guilty [fraud] charges and they are both cooperating with the Southern District of New York,” Williams said.
On December 12, the Department of Justice announced that they were charging Bankman-Fried with multiple felonies, including wire fraud, commodities fraud, money laundering and campaign finance violations, which could carry penalties of up to 115 years in prison.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. and neither the author can guarantee such accuracy. This article is for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no liability for losses and/or damages arising from the use of this publication.
/cloudfront-ap-southeast-2.images.arcpublishing.com/nzme/5UEQ7OO62FFKNMZOXM2JRNAEQ4.jpg?resize=300,300 "Two Auckland Shamiana outlets insolvent after pandemic ‘killed’ business, racked up over 0k in IRD debt")