As per the latest reports, Sam Bankman-Fried is all set to plead not guilty to the allegations of bribing the Chinese authorities. Previously, the disgraced crypto entrepreneur pleaded not guilty to eight charges of fraud and conspiracy for allegedly stealing FTX customer funds. However, these new charges might result in Sam Bankman-Fried getting locked up for decades if he is convicted for a trial.
The newly unsealed indictments accuse Bankman-Fried of conspiring to pay a sum of approximately $40 million to Chinese Government officials. The federal prosecutors believe that SBF ordered Alameda Research to transfer the amount to a private wallet. It is believed that the main reason for doing so was to convince the Chinese authorities to unfreeze Alameda accounts, which hold more than $1 billion in assets.
Sam Bankman-Fried Doesn’t Seem to Stop!
Sam Bankman-Fried has accepted that FTX had a poor risk management system in place. However, he still believes that he is not criminally liable for the downfall of the exchange and the problems caused as a result. Bankman-Fried currently faces a total of 12 charges, out of which he has pleaded not guilty to eight of them. The case trial is set to start on October 2.
It is expected that SBF will be brought for the new charges on Thursday. Similarly, the judge would also take a look at the current bail package and make a few tweaks, including a provision that might limit him to using a phone as he waits for his trial’s outcome.
Sam Bankman-Fried was arrested in December after a series of massive client withdrawals, fueled by concerns about the mix of funds between the exchange and Alameda Research, a situation that played an important role in FTX’s decline. Moreover, it was also alleged that he improperly financed political campaigns in the US for millions of dollars.
The former associates of SBF have currently pleaded guilty to all charges against them, and have agreed to help the authorities in their probe against Sam Bankman-Fried. As of now, SBF is confined to the house of his parents on a pending $250 million bail bond. However, many people argue that the parents of SBF should be criminally charged as well as it is believed that their house was bought through the stolen funds of FTX customers.