FTX news: ex-CEO appears in court, does he plead guilty?

After FTX went bankrupt, it became clear that fraud was suspected. Yet it took a long time before FTX’s founder and former CEO was arrested. He still seems to be relatively strong, and presumably he will in the lawsuit going to tell you how the fork is in the stem.

Bitcoin exchange ex-CEO SBF want to plead guilty

Meanwhile, former FTX CEO Sam Bankman-Fried (SBF) arrested in the Bahamas and extradited to the United States. After his parents apparently posted a huge $250 million bail, he is under house arrest until the criminal trial is over.

He could end up in jail for the ex-CEO for years. The US Department of Justice accuses him of years of fraud of ‘epic magnitude’. SBF is suspected of two transaction fraud and six other charges, including money laundering and violation of election regulations.

According to Reuters it is expected that Bankman-Fried will give his plea in the lawsuit. A hearing will take place next week. He will most likely be present, because it is clear to him that he is breaking an extra law if he does not appear. It is possible that he will strike a similar deal with US authorities as his colleagues. That way his sentence could be reduced.

FTX flopped hard

FTX now has a new CEO, John Ray, who also helped the well-known scammer Bernie Madoff go bankrupt. He stated that he has never seen a company go down so hard. Reuters quotes Ray’s conversation with the US parliament. FTX allegedly lost $8 billion in customer money.

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Yet this is not even commensurate with the practices of Bernie Madoff, who is said to have embezzled $ 64.8 billion using similar tactics. SBF has already acknowledged that he had little involvement with risk management, but he does not believe that he is guilty. There is so much at stake that even the previous judge in the case has left. There could be a conflict of interest.

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