Jan. 3 (UPI) — Embattled crypto exchange founder Sam Bankman-Fried is expected to enter a not guilty plea in a hearing in U.S. District Court in Manhattan on Tuesday to various charges.
Bankman-Fried, the founder of FTX, one of the world’s largest cryptocurrency exchanges before its collapse late last year, faces eight federal counts ranging from wire fraud and conspiracy to commit money laundering, to conspiracy by misusing customer funds.
The plea will allow his case to move to the next phase where he is expected to fight the charges. He was arrested in the Bahamas, where he operated FTX. Prosecutors claim he stole billions from FTX to cover losses at his related hedge fund Alameda Research.
Prosecutors also said the Bankman-Fried also used funds to purchase expensive real estate and to donate millions to political campaigns.
“We allege that the defendant conspired to defraud customers by misappropriating their deposits; to defraud lenders; to commit securities fraud and money laundering; and to violate campaign finance laws,” Attorney General Merrick Garland said last month at the time of the initial arrest.
“As this indictment demonstrates, the U.S. Department of Justice will aggressively investigate and prosecute alleged criminal wrongdoing in the financial system and violations of federal elections laws. We will continue to work to ensure U.S. capital markets operate honestly and with the integrity that investors, lenders, and the American people are entitled to.”
Both FTX and Alameda filed for bankruptcy in December after investors pulled their deposits from the exchange, sparking a panic among crypto owners worldwide.
Bankman-Fried has been free on bond and subject to electronic monitoring while living at his parents’ home in Palo Alto, Calif.