Sam Bankman-Fried set to plead guilty to fraud and embezzlement in FTX case

Sam Bankman-Fried, the former CEO of cryptocurrency exchange FTX, is reportedly pleading criminal charges alleging he defrauded investors and embezzled billions of dollars in funds customers.

The 30-year-old is expected to stand trial on January 3, 2023, before U.S. District Judge Lewis Kaplan in a Manhattan federal courtroom, Reuters reported.

Kaplan was assigned to the case after the original judge recused herself due to a conflict of interest, as her husband's law firm had previously advised to FTX.

Also read: FTX Clients File Lawsuit for Priority Refund: What Investors Need to Know

Prosecutors accused Bankman-Fried of engaging in long-term "fraud of epic proportions" by using client deposits to back his hedge fund Alameda Research, buy property real estate and make political contributions.

He is charged with two counts of wire fraud and six counts of conspiracy, including money laundering and campaign finance violations, and he is found guilty, he faces several decades in prison.

Bankman-Fried admitted there were risk management issues at FTX prior to his December 12 arrest, but maintained that he did not believe he was criminally responsible.< /p>

Two of his associates, Caroline Ellison and Gary Wang, have already pleaded guilty to their role in the collapse of FTX and have agreed to help prosecutors.

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