Last week, two people tied to now-bankrupt FTX and co-founder and former CEO Sam Bankman-Fried plead guilty to criminal charges.
FTX co-founder Gary Wang and sister company Alameda Research CEO Caroline Ellison pleaded guilty--taking plea bargains that permitted lesser charges brought against them. At the forefront of the FTX-scandal, Bankman-Fried was arrested in relation to a lawsuit regarding fraud and other various federal criminal charges regarding his crypto exchange FTX.
According to United States attorney Damian Williams in the Southern District of New York, in a video statement, Bankman-Fried "will be taken to New York and appear before a judge as quickly as possible," according to The Hill.
Some of the specific charges that authorities accused Bankman-Fried of were fraud, money laundering, and campaign finance violations. The United States also charged Bankman-Fried and FTX with diverting customers' revenue in order to Alameda Research in order to invest.
When the hearing occurred, it was at the U.S. District Court in Manhattan, followed by his parents, his legal team, and court security. His next hearing will happen with Judge Ronnie Abrams on January 3, 2023. On this date, Bankman-Fried will have a plea and arraignment.
As a pretrial bond, Bankman-Fried will have a $250 million package - "the largest ever pretrial bond," according to prosecutors. He will also likely be mandated to wear an electronic monitoring bracelet, mental health counseling, and travel restrictions anywhere from the Northern District of California and Eastern Districts of New York.
In addition, Judge Gabriel Gorenstein stated that Bankman-Fried would be in need of "strict supervision" after he is released to his parents' house in California. His parents are both professors at Stanford Law and were both with him in the courtroom.
As former CEO of FTX, Bankman-Fried will be prohibited from opening any lines of credit that exceed $1,000 while waiting for his next trial. According to U.S. Attorney Nicholas Roos, Bankman-Fried was the cause of a "fraud of epic proportions."