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FTX founder Sam Bankman-Fried expected to enter plea next week

Bankman-Fried is currently under house arrest at his parents' California home.

Published: December 28, 2022 6:24pm

Updated: December 28, 2022 7:05pm

Former cryptocurrency mogul Sam Bankman-Fried is slated for an arraignment on Jan. 3, 2023, wherein he is expected to enter a plea in connection with criminal fraud charges he faces over the collapse of FTX.

The digital currency witnessed a near-complete collapse in late November, with investors simultaneously attempting to withdraw their stakes in the firm, leaving it unable to fully remunerate them. Reports quickly emerged of missing assets and suspicious transfers to FTX's sister firm, hedge fund Alameda Research.

The Department of Justice announced in December that it was investigating a multi-million dollar hack of the company that occurred shortly after FTX filed for bankruptcy.

He will appear in Manhattan federal court before U.S. District Judge Lewis Kaplan, according to Reuters. The previous judge recused herself due to her husband's law firm having previously advised FTX.

Bankman-Fried is currently under house arrest at his parents' California home. He was released from federal custody on a $250 million bond.

Bahamian authorities arrested him in early December and he was swiftly extradited to the U.S. to face the litany of fraud charges stemming from his company's collapse. The Bahamas is still conducting its own investigation.

Bankman-Fried's former girlfriend, former Alameda Research CEO Caroline Ellison, and FTX co-founder Gary Wang have both pleaded guilty to criminal fraud charges and are cooperating with prosecutors.

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