Former FTX CEO <a href="http://dailywire.com/topic/sam-bankman-fried" target="_blank" rel="noopener">Sam Bankman-Fried</a> faces four additional charges related to the disgraced entrepreneur’s allegedly <a href="http://dailywire.com/topic/fraud" target="_blank" rel="noopener">fraudulent</a> cryptocurrency empire.
Several companies controlled by Bankman-Fried filed for bankruptcy at the end of last year after customers and investors learned that FTX had improperly commingled funds with sister trading company Alameda Research. A superseding <a href="https://assets.bwbx.io/documents/users/iqjWHBFdfxIU/rwgEbfGxVG9Y/v0" target="_blank" rel="noopener">indictment</a> unveiled on Thursday adds four new charges, including conspiracy to commit bank fraud and conspiracy to operate an unlicensed money transfer business, to the eight charges to which Bankman-Fried has already pleaded not guilty.
According to the document, the former business leader “falsely represented” his intentions to open a bank account and obtain customer funds for the purposes of trading and market making, as well as knowingly controlled and supervised “an unlicensed money transmitting business affecting interstate and foreign commerce.” The indictment noted that Bankman-Fried sought to “purchase influence over cryptocurrency regulation” at the federal level by “steering tens of millions of dollars of illegal campaign contributions to both Democrats and Republicans.”
Bankman-Fried was previously <a href="https://www.dailywire.com/news/sam-bankman-fried-pleads-not-guilty-allowed-to-conceal-who-is-securing-his-250-million-bond" target="_blank" rel="noopener">charged</a> with conspiracy to commit wire fraud, conspiracy to commit securities fraud, and conspiracy to defraud the Federal Election Commission through campaign finance violations.
The indictment unsealed on Thursday added that some political contributions were “made in the names of others in order to obscure the true source of the money and evade federal election law.” Bankman-Fried donated $39 million primarily to Democratic nominees and political action committees ahead of the 2022 midterm elections after emerging as the second-largest donor for the Biden campaign in the 2020 cycle; he was granted four <a href="https://www.dailywire.com/news/sam-bankman-fried-visited-biden-white-house-four-times-ahead-of-his-arrest" target="_blank" rel="noopener">meetings</a> at the White House with senior advisers in the months before his companies filed for bankruptcy.
Beyond using the customer funds to enrich himself, acquire luxury real estate in the Bahamas, and influence the political system, Bankman-Fried <a href="https://www.dailywire.com/news/left-of-center-media-accepted-millions-from-democrat-donor-and-disgraced-crypto-wunderkind-sam-bankman-fried" target="_blank" rel="noopener">donated</a> millions to various media outlets through a nonprofit organization called Building a Stronger Future, which he ran with the help of his brother, Gabe Bankman-Fried, a former Democratic congressional staffer and the director of Guarding Against Pandemics. Several media outlets ran favorable coverage for Bankman-Fried in the days after his empire imploded; The New York Times, for instance, posited in one <a href="https://www.nytimes.com/2022/11/14/technology/ftx-sam-bankman-fried-crypto-bankruptcy.html" target="_blank" rel="noopener">article</a> that the alleged fraudster merely had “ambitions” that “exceeded his grasp.”
Bankman-Fried is currently staying at his parents’ home in northern California. Mark Cohen, a lawyer for Bankman-Fried who previously <a href="https://www.dailywire.com/news/sam-bankman-fried-hires-attorney-who-defended-epstein-confidant-ghislaine-maxwell" target="_blank" rel="noopener">defended</a> Jeffrey Epstein confidant Ghislaine Maxwell, initially succeeded in requesting that the identities of two unknown individuals who secured the bond remain sealed; last week, however, court documents showed that Larry Kramer, the <a href="https://law.stanford.edu/directory/larry-kramer/" target="_blank" rel="noopener">dean</a> emeritus of Stanford Law School and president of the William and Flora Hewlett Foundation, and Andreas Paepcke, a senior research <a href="https://profiles.stanford.edu/andreas-paepcke" target="_blank" rel="noopener">scientist</a> at Stanford University, were the two individuals who secured the bond.
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The academics respectively signed bonds worth $500,000 and $200,000, while Joseph Bankman and Barbara Fried, the parents of Sam Bankman-Fried and former Stanford Law School professors, also <a href="https://s3.documentcloud.org/documents/23654880/unsealed-ftx-bankman-fried-bond-signed-by-stanford-law-dean-kramer-paepcke-press-unsealed-it-paepcke-here.pdf" target="_blank" rel="noopener">secured</a> the bond with equity in their home. Bankman-Fried, who claimed that his entire multibillion-dollar fortune evaporated after FTX collapsed, was initially denied bail due to the significant flight risk he posed.

FTX crypto CEO Sam Bankman-Fried pleads not guilty

New Charges Against Disgraced FTX CEO Sam Bankman-Fried Revealed

Sam Bankman-Fried Receives Four More Additional Charges

Crime

Cryptocurrency

Fraud

Politics

Sam Bankman-Fried

Two academics at <a href="https://www.dailywire.com/topic/stanford-university" target="_blank" rel="noopener">Stanford University</a> secured the $250 million bond on behalf of former FTX CEO <a href="http://dailywire.com/topic/sam-bankman-fried" target="_blank" rel="noopener">Sam Bankman-Fried</a> ahead of his trial, court documents revealed on Wednesday.
Bankman-Fried pleaded <a href="https://www.dailywire.com/news/sam-bankman-fried-pleads-not-guilty-allowed-to-conceal-who-is-securing-his-250-million-bond" target="_blank" rel="noopener">not guilty</a> last month to eight charges, including conspiracy to commit wire fraud, conspiracy to commit securities fraud, and conspiracy to defraud the Federal Election Commission through campaign finance violations. His <a href="http://dailywire.com/topic/cryptocurrency" target="_blank" rel="noopener">cryptocurrency</a> empire collapsed at the end of last year after users and investors learned that FTX had improperly commingled funds with sister trading company Alameda Research.
Mark Cohen, a lawyer for Bankman-Fried who previously <a href="https://www.dailywire.com/news/sam-bankman-fried-hires-attorney-who-defended-epstein-confidant-ghislaine-maxwell" target="_blank" rel="noopener">defended</a> Jeffrey Epstein confidant Ghislaine Maxwell, initially succeeded in requesting that the identities of two unknown individuals who secured the bond remain sealed. Judge Lewis Kaplan of the Southern District of New York later ruled that the names could be made public.
Court documents showed that Larry Kramer, the <a href="https://law.stanford.edu/directory/larry-kramer/" target="_blank" rel="noopener">dean</a> emeritus of Stanford Law School and president of the William and Flora Hewlett Foundation, and Andreas Paepcke, a senior research <a href="https://profiles.stanford.edu/andreas-paepcke" target="_blank" rel="noopener">scientist</a> at Stanford University, were the two individuals who secured the bond. Kramer <a href="https://www.courtlistener.com/docket/66631291/71/united-states-v-bankman-fried/" target="_blank" rel="noopener">signed</a> a $500,000 bond, while Paepcke signed a $200,000 bond; Joseph Bankman and Barbara Fried, the parents of Sam Bankman-Fried and former Stanford Law School professors, also <a href="https://s3.documentcloud.org/documents/23654880/unsealed-ftx-bankman-fried-bond-signed-by-stanford-law-dean-kramer-paepcke-press-unsealed-it-paepcke-here.pdf" target="_blank" rel="noopener">secured</a> the bond with the equity in their northern California home.
Kramer said in a <a href="https://www.cnn.com/2023/02/15/business/sam-bankman-fried-bail-cosigners-stanford/index.html" target="_blank" rel="noopener">statement</a> to CNN that he has counted Bankman and Fried as close friends for nearly three decades. “During the past two years, while my family faced a harrowing battle with cancer, they have been the truest of friends,” he remarked, adding that there was no “interest in this matter other than to help our loyal and steadfast friends.”
None of the parties will have to pay any amount unless Bankman-Fried does not appear in court proceedings. The disgraced entrepreneur is currently staying in his parents’ home, which is worth approximately $4 million and features <a href="https://www.dailywire.com/news/the-4-million-california-home-where-sam-bankman-fried-is-spending-his-house-arrest" target="_blank" rel="noopener">amenities</a> such as three baths, wall-to-wall windows, a study, a gated pool, and a lawn lined by palm trees.
Bankman-Fried, who claimed that he lost his entire multibillion-dollar fortune as FTX collapsed, was originally denied bail due to the significant flight risk he posed.
Federal prosecutors <a href="https://www.dailywire.com/news/sam-bankman-fried-attempted-to-tamper-with-witness-prosecutors-allege" target="_blank" rel="noopener">requested</a> last month that Bankman-Fried become subject to more restrictions during his pretrial release after he allegedly tried to tamper with a witness through the encrypted messaging platform Signal. He reportedly told the current general counsel of FTX US in a message that he “would really love to reconnect and see if there’s a way for us to have a constructive relationship, use each other as resources when possible, or at least vet things with each other.” United States Attorney Damian Williams from the Southern District of New York wrote that the request to “vet things with each other” is suggestive of an attempt to impact the witness’s testimony, while the “constructive relationship” appeal is an invitation to cooperate.
Bankman-Fried generated controversy beyond the cryptocurrency sector because of his <a href="https://www.dailywire.com/news/sam-bankman-fried-and-allies-gave-money-to-one-in-three-congress-members-heres-what-they-did-with-it" target="_blank" rel="noopener">extensive ties</a> to politicians and government officials. He contributed $39 million to Democratic campaigns ahead of the 2022 midterm elections after emerging as the second-largest donor for the Biden campaign in the 2020 cycle; he was granted four <a href="https://www.dailywire.com/news/sam-bankman-fried-visited-biden-white-house-four-times-ahead-of-his-arrest" target="_blank" rel="noopener">meetings</a> at the White House in the months before his company filed for bankruptcy.

Sam Bankman-Fried released on $250 million bond after appearing in a US court

Court Reveals Identities Of The People Who Secured Sam Bankman-Fried’s $250 Million Bond

Two Stanford Affiliates Secured Sam Bankman-Fried's $250 Million Bond

2020 Election

2022 Election

2022 Midterms

Stanford University

<a href="https://www.dailywire.com/topic/house-republicans" target="_blank" rel="noopener">House Republicans</a> asked for any communications about the arrest of former FTX CEO <a href="https://dailywire.com/topic/sam-bankman-fried" target="_blank" rel="noopener">Sam Bankman-Fried</a> sent by officials in the <a href="https://www.dailywire.com/topic/securities-and-exchange-commission" target="_blank" rel="noopener">Securities and Exchange Commission</a>.
Bankman-Fried has been charged with several counts of fraud after he allegedly commingled assets between FTX and sister trading company Alameda Research without customers’ knowledge. The entrepreneur was arrested on December 12, hours before he was scheduled to testify before the House Financial Services Committee over misconduct at his firm. Rep. Patrick McHenry (R-NC) and Rep. Bill Huizenga (R-MI), the top Republicans on the committee, wrote in a <a href="https://financialservices.house.gov/uploadedfiles/2023-02-10_mchenry_huizenga_letter_to_sec_on_sbf_charges_final.pdf" target="_blank" rel="noopener">letter</a> to SEC Chair Gary Gensler that the “timing of the charges and his arrest raise serious questions about the SEC’s process and cooperation with the Department of Justice.”
Authorities in the Bahamas, where FTX had been headquartered, <a href="https://www.dailywire.com/news/breaking-democrat-megadonor-sam-bankman-fried-arrested-in-bahamas-faces-criminal-charges-in-u-s" target="_blank" rel="noopener">arrested</a> Bankman-Fried after they were notified that the United States had filed criminal charges against the executive. Current FTX CEO John Ray III, an attorney overseeing the company’s bankruptcy, <a href="https://www.dailywire.com/news/attorney-overseeing-ftx-bankruptcy-testifies-before-congress-grossly-inexperienced-people-ran-company-went-on-5-billion-spending-binge" target="_blank" rel="noopener">testified</a> before Congress in his stead. McHenry and Huizenga asked for “all records and communications” to and from SEC Division of Enforcement Director Gurbir Grewal and other staffers “referring or relating to the charges filed against Sam Bankman-Fried” by February 23.
Bankman-Fried pleaded <a href="https://www.dailywire.com/news/sam-bankman-fried-pleads-not-guilty-allowed-to-conceal-who-is-securing-his-250-million-bond" target="_blank" rel="noopener">not guilty</a> last month to eight charges, which include conspiracy to commit wire fraud, conspiracy to commit securities fraud, and conspiracy to commit campaign finance violations. He faces as much as 115 years in prison.
The disgraced mogul’s <a href="https://www.dailywire.com/news/officials-charge-sam-bankman-fried-of-using-customer-funds-for-lavish-real-estate-and-large-political-donations" target="_blank" rel="noopener">extensive</a> political connections came to light in the weeks after his company’s bankruptcy, including the $39 million he donated to Democrats ahead of the midterm elections and four <a href="https://www.dailywire.com/news/sam-bankman-fried-visited-biden-white-house-four-times-ahead-of-his-arrest" target="_blank" rel="noopener">meetings</a> he was granted at the White House with senior advisers Steve Richetti and Bruce Reed. Bankman-Fried was also the second-largest donor to the campaign which would eventually grant former Vice President Joe Biden control of the White House.
A previous <a href="https://www.dailywire.com/news/sam-bankman-fried-and-allies-gave-money-to-one-in-three-congress-members-heres-what-they-did-with-it" target="_blank" rel="noopener">analysis</a> of Federal Election Commission data published by Coindesk found last month that 196 of the 535 members of the House and Senate received donations from Bankman-Fried and his associates. FTX announced on Sunday that the company would begin sending “confidential messages to political figures, political action funds, and other recipients of contributions” made by the company’s former executives.
The letter from House Republicans comes shortly after Gensler and other senior regulators unveiled a number of enforcement <a href="https://www.dailywire.com/news/paternalistic-and-lazy-regulators-unleash-flurry-of-actions-against-crypto-companies-but-not-all-of-them-are-on-board" target="_blank" rel="noopener">actions</a> against cryptocurrency firms. The agency announced that cryptocurrency exchange Kraken would pay a $30 million settlement for failing to register its staking-as-a-service initiative, under which retail investors are reimbursed for holding certain digital assets, while a report revealed that stablecoin issuer Paxos is currently under investigation from the New York Department of Financial Services.
The charges against Bankman-Fried and untold losses from FTX customers have prompted lawmakers to consider new regulations for the nascent industry. Members of the Senate Agriculture Committee recently <a href="https://www.dailywire.com/news/top-commodities-regulator-tells-senators-he-met-with-sam-bankman-fried-10-times" target="_blank" rel="noopener">held</a> a hearing with Commodity Futures Trading Commission Chairman Rostin Behnam on increasing federal oversight of the sector.
“For years many have recognized that a patchwork of federal and state-based regulation is an unsuitable substitute for a comprehensive approach,” the official remarked. “We are here today because many Americans invested in a novel product and will likely lose money because digital asset markets lack the basic protections that we have all come to expect and have made American financial markets the envy of the world.”

Lawmakers Probe SEC Over Strange ‘Timing’ Of Democrat Megadonor, Alleged Fraudster Sam Bankman-Fried’s Arrest

House GOP Probes Top Regulators Over Strange ‘Timing’ Of Sam Bankman-Fried’s Arrest

Congress

House Republicans

Securities and Exchange Commission

U.S.

Some federal regulators, including <a href="https://www.dailywire.com/topic/securities-and-exchange-commission" target="_blank" rel="noopener">Securities and Exchange Commission</a> Chairman Gary Gensler, have cracked down on a number of <a href="https://www.dailywire.com/topic/cryptocurrency" target="_blank" rel="noopener">cryptocurrency</a> firms as lawmakers and agencies seek to introduce regulations in the nascent sector.
The SEC announced on Thursday that cryptocurrency exchange Kraken would pay a $30 million settlement for failing to register its staking-as-a-service initiative, under which retail investors are compensated for holding certain digital assets. “Whether it’s through staking-as-a-service, lending, or other means, crypto intermediaries, when offering investment contracts in exchange for investors’ tokens, need to provide the proper disclosures and safeguards required by our securities laws,” Gensler said in a <a href="https://www.sec.gov/news/press-release/2023-25" target="_blank" rel="noopener">statement</a>.
Coindesk also revealed in a <a href="https://www.coindesk.com/policy/2023/02/09/stablecoin-issuer-paxos-is-being-investigated-by-new-york-regulator/?outputType=amp" target="_blank" rel="noopener">report</a> on Thursday that stablecoin issuer Paxos is currently under investigation from the New York Department of Financial Services. The news came shortly after the firm made headlines over rumors that the United States Office of the Comptroller of the Currency would ask executives to withdraw their application for a full banking charter.
The moves, according to Fox Business journalist Eleanor Terrett, are the <a href="https://twitter.com/EleanorTerrett/status/1623796900586573826" target="_blank" rel="noopener">beginning</a> of “a myriad of enforcement actions” against cryptocurrency firms in the coming weeks. Prices for Bitcoin have fallen 5.7% over the past week, while prices for Ethereum have fallen 6.5%. Both assets had largely rebounded from declines induced by the collapse of cryptocurrency exchange FTX, which occurred after customers and investors learned Sam Bankman-Fried, the company’s chief executive, had commingled funds with sister trading firm Alameda Research.
Shares for exchange platform Coinbase have likewise fallen more than 22% over the past week. The company is owned by Digital Currency Group, which also holds investments in Genesis Global Holdco; the company and two of its subsidiaries <a href="https://www.dailywire.com/news/another-cryptocurrency-firm-goes-bankrupt-as-ftx-fallout-continues" target="_blank" rel="noopener">filed</a> for bankruptcy last month, although Genesis Global Trading and other subsidiaries will continue operations. The insolvency announcement came days after the SEC <a href="https://www.sec.gov/news/press-release/2023-7" target="_blank" rel="noopener">charged</a> Genesis Global Capital, one of the two subsidiaries that folded, and Gemini Trust Company for raising billions of dollars in cryptocurrency assets through an unregistered offer.
“We allege that Genesis and Gemini offered unregistered securities to the public, bypassing disclosure requirements designed to protect investors,” Gensler said in another <a href="https://www.sec.gov/news/press-release/2023-7" target="_blank" rel="noopener">statement</a>. “Today’s charges build on previous actions to make clear to the marketplace and the investing public that crypto lending platforms and other intermediaries need to comply with our time-tested securities laws. Doing so best protects investors.”
Gensler’s actions are by no means universally approved within his agency. SEC Commissioner Hester Peirce, another member of the five-person board which leads the agency, wrote a dissenting <a href="https://www.sec.gov/news/statement/peirce-statement-kraken-020923" target="_blank" rel="noopener">opinion</a> on the Kraken settlement on Thursday. “A paternalistic and lazy regulator settles on a solution like the one in this settlement: do not initiate a public process to develop a workable registration process that provides valuable information to investors, just shut it down,” she wrote.
Recent tumult in the cryptocurrency sector and the widely publicized criminal proceedings against Bankman-Fried have quickly eroded consumers’ trust in the novel assets: a <a href="https://www.dailywire.com/news/investors-much-more-skeptical-of-crypto-after-brutal-bear-market-ftx-collapse" target="_blank" rel="noopener">survey</a> conducted by CNBC and Momentive found that 60% of Americans see the risk of cryptocurrency investments as “high,” while only 10% say the assets carry little or no risk.
The actions from the SEC also come as lawmakers consider regulations of their own in the aftermath of the FTX collapse. Members of the Senate Agriculture Committee recently <a href="https://www.dailywire.com/news/top-commodities-regulator-tells-senators-he-met-with-sam-bankman-fried-10-times" target="_blank" rel="noopener">held</a> a hearing with Commodity Futures Trading Commission Chairman Rostin Behnam on increasing federal oversight of the nascent industry, while members of the House Financial Services Committee <a href="https://www.dailywire.com/news/attorney-overseeing-ftx-bankruptcy-testifies-before-congress-grossly-inexperienced-people-ran-company-went-on-5-billion-spending-binge" target="_blank" rel="noopener">questioned</a> FTX CEO John Ray III on the abuses that had occurred at the company.

SEC Chair Gensler Testifies In Senate Hearing

‘Paternalistic And Lazy’: Regulators Unleash Flurry Of Actions Against Crypto Companies, But Not All Of Them Are On Board

Regulators Unleash Flurry Of Actions Against Crypto Companies

Biden Administration

More than one in three members of <a href="https://www.dailywire.com/topic/congress" target="_blank" rel="noopener">Congress</a> accepted campaign contributions from former FTX CEO <a href="https://dailywire.com/topic/sam-bankman-fried" target="_blank" rel="noopener">Sam Bankman-Fried</a> and other affiliates of the defunct <a href="http://dailywire.com/topic/cryptocurrency" target="_blank" rel="noopener">cryptocurrency</a> exchange, and bankruptcy lawyers are finding resistance as they seek to claw back the funds.
Bankman-Fried was arrested and charged with several counts of fraud after allegedly commingling assets between FTX and sister trading company Alameda Research. His <a href="https://www.dailywire.com/news/officials-charge-sam-bankman-fried-of-using-customer-funds-for-lavish-real-estate-and-large-political-donations" target="_blank" rel="noopener">extensive political connections</a> came to public attention in the weeks after his company’s bankruptcy, including the $39 million he donated to Democrats ahead of the midterms and four <a href="https://www.dailywire.com/news/sam-bankman-fried-visited-biden-white-house-four-times-ahead-of-his-arrest" target="_blank" rel="noopener">meetings</a> he was granted at the White House.
FTX, which is now led by bankruptcy lawyer John Ray III, announced Sunday that the company would begin sending “confidential messages to political figures, political action funds, and other recipients of contributions” made by former FTX executives, according to a <a href="https://www.prnewswire.com/news-releases/ftx-debtors-send-messages-to-recipients-of-avoidable-donations-301738948.html" target="_blank" rel="noopener">press release</a> that warned of legal action against entities which fail to return the payments.
A previous <a href="https://www.coindesk.com/policy/2023/01/17/congress-ftx-problem-1-in-3-members-got-cash-from-crypto-exchanges-bosses/" target="_blank" rel="noopener">analysis</a> of Federal Election Commission data produced by Coindesk concluded last month that 196 of the 535 members of the House and Senate received donations from Bankman-Fried and his associates. Some 34 of the 53 campaigns that responded to the outlet said they would forward the money to various nonprofit causes. They included Rep. Greg Casar (D-TX), who donated the contributions to an advocacy group called Fight Corporate Monopolies, and Rep. Ronny Jackson (R-TX), who donated to a crisis pregnancy center.
FTX warned that “making a payment or donation to a third party,” including a charity, would not prevent the company from “seeking recovery from the recipient or any subsequent transferee.” Some 19 of the lawmakers who responded to the inquiries from Coindesk said they were holding the funds until they received guidance on how to return them. Only five lawmakers indicated that they had managed to return the money to FTX.
Some 143 lawmakers did not provide a comment to Coindesk, marking nearly three-quarters of the individual politicians who received donations from Bankman-Fried and his affiliates.
Most of the contributions provided to lawmakers were relatively small. Nishad Singh, the former director of engineering for FTX, donated $2,900 to Nancy Pelosi for Congress, while Ryan Salame, who served as co-CEO, donated a combined $8,700 to Kevin McCarthy for Congress, according to <a href="https://www.fec.gov/data/receipts/individual-contributions/?two_year_transaction_period=2022&amp;min_date=01%2F01%2F2021&amp;max_date=12%2F31%2F2022" target="_blank" rel="noopener">data</a> from the Federal Election Commission. Mark Wetjen, the former Washington adviser for Bankman-Fried and a previous commissioner of the Commodity Futures Trading Commission, donated $2,900 to Friends of Schumer.
The Senate Majority PAC, which exists to elect Democrats, <a href="https://www.dailywire.com/news/democrats-say-they-will-return-3-million-donated-by-ftx-executives" target="_blank" rel="noopener">announced</a> last year that the group would return $3 million donated by Singh and Bankman-Fried. The Democratic National Committee, as well as the Democratic Senatorial Campaign Committee and the Democratic Congressional Campaign Committee, issued similar commitments.
Attorneys managing the bankruptcy proceedings of FTX announced last month that they have <a href="https://www.dailywire.com/news/ftx-bankruptcy-lawyers-reveal-how-much-they-have-clawed-back-for-defrauded-investors" target="_blank" rel="noopener">recovered</a> some $5 billion in assets to repay defrauded customers and investors. Bankman-Fried faces charges such as conspiracy to commit wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to defraud the Federal Election Commission and commit campaign finance violations, according to a <a href="https://www.justice.gov/usao-sdny/pr/united-states-attorney-announces-charges-against-ftx-founder-samuel-bankman-fried" target="_blank" rel="noopener">press release</a> from the Justice Department.
The entrepreneur, who could spend as many as 115 years in prison, has <a href="https://www.dailywire.com/news/sam-bankman-fried-pleads-not-guilty-allowed-to-conceal-who-is-securing-his-250-million-bond" target="_blank" rel="noopener">pleaded</a> not guilty and is awaiting trial from his parents’ estate in northern California.

Sam Bankman-Fried And Allies Gave Money To One In Three Congress Members. Here’s What They Did With It.

FTX Affiliates Gave Money To One In Three Congress Members. Here's What They Did With It.

Democrats

Republicans

Federal prosecutors requested that former FTX CEO <a href="http://dailywire.com/topic/sam-bankman-fried" target="_blank" rel="noopener">Sam Bankman-Fried</a> become subject to more restrictions during his pretrial release after he allegedly tried to tamper with a witness through the encrypted messaging platform Signal.
The former cryptocurrency executive is awaiting trial for various <a href="http://dailywire.com/topic/fraud" target="_blank" rel="noopener">fraud</a> charges after he commingled funds between FTX and sister trading company Alameda Research. United States Attorney Damian Williams from the Southern District of New York asked Judge Lewis Kaplan in a <a href="https://www.courtlistener.com/docket/66631291/50/united-states-v-bankman-fried/" target="_blank" rel="noopener">letter</a> to stop Bankman-Fried from contacting former FTX associates unless in the presence of counsel and asked that the disgraced entrepreneur lose access to Signal and similar platforms.
Bankman-Fried has allegedly been in contact with the current general counsel of FTX US, who might be a witness at the trial. He reportedly told the executive in a message that he “would really love to reconnect and see if there’s a way for us to have a constructive relationship, use each other as resources when possible, or at least vet things with each other.” Williams wrote that the request to “vet things with each other” is suggestive of an attempt to impact the witness’s testimony, while the “constructive relationship” appeal is an invitation to cooperate with him.
“Efforts by the defendant to improve his relationship with potential witnesses that may testify against him may itself constitute witness tampering,” he wrote. “Were the defendant to ‘vet’ his version of relevant events with potential witnesses, that might have the effect of discouraging witnesses from testifying in a manner contrary to the defendant’s narrative.”
Bankman-Fried can use Signal to “evade bail restrictions and pretrial oversight” since encrypted messages on the platform may autodelete after a short period of time. “The proposed bail conditions in combination would more effectively prevent the defendant from obstructing justice,” Williams added. “This proposed restriction will not inhibit the defendant’s ability to communicate with others as he could still use text message, email, and conventional telephone calls.”
Bankman-Fried pleaded <a href="https://www.dailywire.com/news/sam-bankman-fried-pleads-not-guilty-allowed-to-conceal-who-is-securing-his-250-million-bond" target="_blank" rel="noopener">not guilty</a> earlier this month to eight charges, including conspiracy to commit wire fraud, conspiracy to commit securities fraud, and conspiracy to defraud the Federal Election Commission through campaign finance violations. Mark Cohen, a lawyer for Bankman-Fried who previously <a href="https://www.dailywire.com/news/sam-bankman-fried-hires-attorney-who-defended-epstein-confidant-ghislaine-maxwell" target="_blank" rel="noopener">defended</a> Jeffrey Epstein confidant Ghislaine Maxwell, successfully requested that the names and addresses of two unknown individuals who secured a $250 million bond for Bankman-Fried remain sealed. The entrepreneur could spend as much as 115 years in prison if convicted on all counts.
Bankruptcy lawyers managing the insolvency of FTX have <a href="https://www.dailywire.com/news/ftx-bankruptcy-lawyers-reveal-how-much-they-have-clawed-back-for-defrauded-investors" target="_blank" rel="noopener">recovered</a> $5 billion of customer funds in the forms of cash, liquid cryptocurrency, and liquid investment securities. Authorities in the Bahamas, where FTX and other companies led by Bankman-Fried were headquartered, <a href="https://www.dailywire.com/news/bahamas-holding-3-5-billion-of-ftxs-cryptocurrency-for-safekeeping" target="_blank" rel="noopener">seized</a> $3.5 billion of assets in the days after the company’s collapse.
Bankman-Fried’s <a href="https://www.dailywire.com/news/officials-charge-sam-bankman-fried-of-using-customer-funds-for-lavish-real-estate-and-large-political-donations" target="_blank" rel="noopener">extensive political connections</a> came to public attention in the weeks after his company’s bankruptcy, including the $39 million he donated to Democrats ahead of the midterms and four <a href="https://www.dailywire.com/news/sam-bankman-fried-visited-biden-white-house-four-times-ahead-of-his-arrest" target="_blank" rel="noopener">meetings</a> he was granted at the White House with top officials Steve Richetti and Bruce Reed. The Senate Majority PAC, which exists to elect Democrats to the upper chamber of Congress, <a href="https://www.dailywire.com/news/democrats-say-they-will-return-3-million-donated-by-ftx-executives" target="_blank" rel="noopener">announced</a> plans to return $3 million donated by Bankman-Fried and another FTX executive.

Former CEO of FTX Sam Bankman-Fried leaves the Federal Court

Sam Bankman-Fried Attempted To Tamper With Witness, Prosecutors Allege

Sam Bankman-Fried Tried To Witness Tamper, Prosecutors Say

Robert Belfer, an oil entrepreneur and the patriarch of the elite Belfer family, lost money during the bankruptcy of cryptocurrency platform <a href="https://www.dailywire.com/topic/sam-bankman-fried" target="_blank" rel="noopener">FTX</a> years after he suffered hits from the collapse of fraudulent energy company Enron and the Ponzi scheme led by Bernie Madoff.
Court documents show that investment funds linked to the Belfer family were included in a list of shareholders for FTX, the fraudulent digital asset company led by 30-year-old Sam Bankman-Fried, according to a <a href="https://www.ft.com/content/2c70076a-3c59-4183-b4c6-79fb202a8b98" target="_blank" rel="noopener">report</a> from Financial Times. Belfer Investment Partners and Lime Partners, both of which are linked to the family, held a combined $34.5 million in the company as of the beginning of last year.
Robert Belfer and his wife, Renée, are philanthropists who have donated heavily to the Metropolitan Museum of Art in New York City; the institution’s Greek and Roman galleries bear the Belfer name, as does the international affairs center at Harvard Kennedy School. Robert Belfer is the son of Arthur Belfer, who moved to the United States from Poland soon after Nazi Germany invaded the country. He imported feathers for pillows and sleeping bags before his company began dealing in foam rubber and petroleum products.
Belco Petroleum Corporation later became a Fortune 500 company and was acquired by a predecessor of Enron, making the Belfer family stakeholders in the company. Robert Belfer served on the board of Enron until 2002, five years before the company was rendered insolvent in a development that cost the Belfers some $2 billion.
The family, down to a net worth of approximately $110 million, had a stroke of luck by withdrawing $28 million from the investment advisory run by Bernie Madoff. The late financier’s Ponzi scheme was discovered shortly after the stock market crash of 2008. Irving Picard, the trustee appointed to claw back funds on behalf of the Madoff victims, filed suit against the family to obtain investments in an attempt to aid other victims, according to a <a href="https://nypost.com/2023/01/16/oil-tycoon-robert-belfer-lost-a-fortune-with-enron-madoff-and-ftx/" target="_blank" rel="noopener">report</a> from the New York Post. The result of the legal proceedings is unknown.
Bankman-Fried, whose alleged misconduct has often been compared to the Madoff scheme, pleaded <a href="https://www.dailywire.com/news/sam-bankman-fried-pleads-not-guilty-allowed-to-conceal-who-is-securing-his-250-million-bond" target="_blank" rel="noopener">not guilty</a> earlier this month to eight charges, including conspiracy to commit wire fraud and conspiracy to commit securities fraud. Celebrities such as Tampa Bay Buccaneers quarterback Tom Brady and supermodel ex-wife Gisele Bündchen received combinations of equity and cryptocurrencies as reimbursement for appearing in advertisements and publicly endorsing FTX; they now face a <a href="https://www.dailywire.com/news/tom-brady-steph-curry-other-celebrities-sued-for-pushing-ponzi-scheme-ftx" target="_blank" rel="noopener">lawsuit</a> accusing them of participating in a “fraudulent scheme” against unsophisticated investors.
FTX collapsed after users learned that their funds were commingled with sister trading firm Alameda Research, which was led by a former love interest of Bankman-Fried. A number of individual users and institutional clients had as much as $8 billion remaining with the company, which Bankman-Fried had attempted to <a href="https://www.dailywire.com/news/former-crypto-billionaire-sam-bankman-fried-whose-entire-fortune-just-went-to-zero-is-calling-around-for-new-investors" target="_blank" rel="noopener">solicit</a> from investors with little success. John Ray III, a bankruptcy lawyer who was appointed to lead the FTX bankruptcy proceedings, <a href="https://www.dailywire.com/news/lawyer-overseeing-ftx-fallout-never-in-my-career-have-i-seen-such-a-complete-failure" target="_blank" rel="noopener">told</a> lawmakers that he had never seen “such a complete failure of corporate controls and such a complete absence of trustworthy financial information.”
Bankman-Fried and fellow executives had used the funds to purchase luxury tropical real estate and make sizable political contributions to Democratic candidates. Attorneys have <a href="https://www.dailywire.com/news/ftx-bankruptcy-lawyers-reveal-how-much-they-have-clawed-back-for-defrauded-investors" target="_blank" rel="noopener">recovered</a> some $5 billion in assets to repay defrauded customers and investors.

Hope on the Horizon Alzheimer’s Drug Discovery Foundation Eighth Annual Fall Symposium & Luncheon

Fool Me Thrice: New York Businessman Fell Prey To Enron, Madoff, And FTX Scams

Businessman Fell Prey To Enron, Madoff, And FTX Scams

Business

Genesis Global Holdco officially filed for bankruptcy several weeks after fellow <a href="http://dailywire.com/topic/cryptocurrency" target="_blank" rel="noopener">cryptocurrency</a> exchange FTX suddenly imploded.
The company and two subsidiaries, Genesis Global Capital and Genesis Asia Pacific, submitted bankruptcy petitions with the United States Bankruptcy Court for the Southern District of New York. Genesis Global Trading and other subsidiaries will continue operations.
“While we have made significant progress refining our business plans to remedy liquidity issues caused by the recent extraordinary challenges in our industry, including the default of Three Arrows Capital and the bankruptcy of FTX, an in-court restructuring presents the most effective avenue through which to preserve assets and create the best possible outcome for all Genesis stakeholders,” Genesis Interim CEO Derar Islim remarked in a <a href="https://www.businesswire.com/news/home/20230119005955/en/Genesis-Initiates-Process-to-Achieve-Global-Resolution-to-Maximize-Value-for-All-Clients-and-Stakeholders-and-Strengthen-Its-Business-for-the-Future" target="_blank" rel="noopener">press release</a>.
The company is considering a restructuring process that may involve a capital raise or another transaction that could permit the business to emerge under new management. “We have crafted a deliberate process and roadmap through which we believe we can reach the best solution for clients and other stakeholders,” added Paul Aronzon, an independent director at Genesis.
The company is owned by Digital Currency Group, which also holds investments in popular exchange platform Coinbase and several dozen other cryptocurrency companies. Genesis had <a href="https://www.dailywire.com/news/second-major-cryptocurrency-exchange-could-be-poised-to-go-bankrupt" target="_blank" rel="noopener">ceased withdrawals</a> and new loan originations two months ago; company leadership was reportedly in talks to receive an investment from cryptocurrency platform Binance.
The bankruptcy comes after reports revealed that former FTX CEO Sam Bankman-Fried had commingled funds between the exchange platform and sister trading company Alameda Research. BlockFi, a lending platform, <a href="https://www.dailywire.com/news/crypto-company-blockfi-files-for-bankruptcy-after-ftx-collapse" target="_blank" rel="noopener">filed for bankruptcy</a> days after FTX was rendered insolvent, while Voyager and Celsius had already declared bankruptcy months earlier as the nascent sector endured a bear market.
Some 60% of Americans now see the risk of cryptocurrency investments as “high,” according to a <a href="https://www.dailywire.com/news/investors-much-more-skeptical-of-crypto-after-brutal-bear-market-ftx-collapse" target="_blank" rel="noopener">survey</a> conducted by CNBC and Momentive. Another 26% see cryptocurrencies as moderately risky, while only 10% say the assets carry “little” or no risk.
Bankman-Fried pleaded <a href="https://www.dailywire.com/news/sam-bankman-fried-pleads-not-guilty-allowed-to-conceal-who-is-securing-his-250-million-bond" target="_blank" rel="noopener">not guilty</a> earlier this month to eight charges, which include conspiracy to commit wire fraud, conspiracy to commit securities fraud, and conspiracy to defraud the Federal Election Commission through campaign finance violations. Mark Cohen, a lawyer for Bankman-Fried who previously <a href="https://www.dailywire.com/news/sam-bankman-fried-hires-attorney-who-defended-epstein-confidant-ghislaine-maxwell" target="_blank" rel="noopener">defended</a> Jeffrey Epstein confidant Ghislaine Maxwell, successfully requested that U.S. District Judge Lewis Kaplan permit the sealing of the names and addresses of two unknown individuals who secured a $250 million bond for Bankman-Fried.
Coinbase announced plans last week to <a href="https://www.dailywire.com/news/major-crypto-platform-cuts-headcount-20-for-the-second-time-in-seven-months" target="_blank" rel="noopener">dismiss</a> roughly 20% of workers for the second time in seven months. Coinbase CEO Brian Armstrong said in a <a href="https://www.coinbase.com/blog/a-message-from-ceo-and-co-founder-brian-armstrong-to-coinbase-employees?clickId=1pVR-3RzfxyNUCESf4yMnTk6UkAwXNTRo0732g0&amp;utm_source=impact&amp;utm_medium=growthp&amp;utm_campaign=rt_p_m_w_d_acq_imp_gro_aff_Skimbit%20Ltd.&amp;utm_content=552039&amp;utm_creative=Online%20Tracking%20Link&amp;irgwc=1" target="_blank" rel="noopener">message</a> to employees that “unscrupulous actors in the industry” and the possibility of “further contagion” are presenting near-term difficulties for the company. He nevertheless said the failure of a “large competitor” and the increased “regulatory clarity” that will emerge from the collapse of FTX would produce long-term benefits for his company.
The bankruptcy of FTX has indeed spurred lawmakers to call for increased scrutiny of the cryptocurrency sector. Members of the Senate <a href="https://www.dailywire.com/news/top-commodities-regulator-tells-senators-he-met-with-sam-bankman-fried-10-times" target="_blank" rel="noopener">considered</a> various proposals for more regulations on digital asset markets with Commodity Futures Trading Commission Chairman Rostin Behnam, while members of the House of Representatives <a href="https://www.dailywire.com/news/attorney-overseeing-ftx-bankruptcy-testifies-before-congress-grossly-inexperienced-people-ran-company-went-on-5-billion-spending-binge" target="_blank" rel="noopener">discussed</a> the bankruptcy proceedings of FTX with attorney John Ray III.

In this photo illustration, the Genesis Global Trading logo

Another Cryptocurrency Firm Goes Bankrupt As FTX Fallout Continues

Cryptocurrency Firm Genesis Goes Bankrupt As FTX Fallout Continues

Economy

Attorneys managing the bankruptcy of defunct <a href="http://dailywire.com/topic/cryptocurrency" target="_blank" rel="noopener">cryptocurrency</a> exchange FTX announced that they have recovered some $5 billion in assets to repay defrauded customers and investors.
Former FTX CEO <a href="http://dailywire.com/topic/sam-bankman-fried" target="_blank" rel="noopener">Sam Bankman-Fried</a> garnered controversy after users learned that he commingled funds between his exchange platform and Alameda Research, a trading firm he also controls, losing billions’ worth of assets as customers rushed to withdraw their balances. Adam Landis, an attorney working to recover funds, said that deposits were used to purchase lavish amenities and otherwise improperly enrich the company’s founders.
&#8220;We know what Alameda did with the money. It bought planes, houses, threw parties, made political donations. It made personal loans to its founders. It sponsored the FTX Arena in Miami, a Formula One team, the League of Legends, Coachella and many other businesses, events and personalities,&#8221; Landis remarked during a Wednesday hearing, according to a <a href="https://www.coindesk.com/policy/2023/01/11/ftx-has-recovered-over-5b-in-assets-bankruptcy-attorney-says/" target="_blank" rel="noopener">report</a> from Coinbase. &#8220;The amount of the shortfall is not yet clear. It will depend on the size of the claims pool and our recovery efforts. But every week we come closer to completing the work necessary to estimate recoveries for the purposes of a plan of reorganization.”
The recovered funds came in the forms of cash, liquid cryptocurrency, and liquid investment securities. Landis added that the company also has control of illiquid cryptocurrency reserves “where our holdings are so large relative to the total supply that our positions cannot be sold without substantially affecting the market for the token.”
Lawyers for the company could only find $1 billion of assets as of last month. The company said in bankruptcy filings that the total amount missing was between $1 billion and $10 billion. Authorities in the Bahamas, where FTX and other companies led by Bankman-Fried were headquartered, <a href="https://www.dailywire.com/news/bahamas-holding-3-5-billion-of-ftxs-cryptocurrency-for-safekeeping" target="_blank" rel="noopener">seized</a> $3.5 billion of assets in the days after the company’s collapse.
Damien Williams, the United States Attorney for the Southern District of New York, indicted Bankman-Fried of conspiracy to commit wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to defraud the Federal Election Commission and commit campaign finance violations, according to a <a href="https://www.justice.gov/usao-sdny/pr/united-states-attorney-announces-charges-against-ftx-founder-samuel-bankman-fried" target="_blank" rel="noopener">press release</a> from the Justice Department. The entrepreneur, who could spend as many as 115 years in prison, has <a href="https://www.dailywire.com/news/sam-bankman-fried-pleads-not-guilty-allowed-to-conceal-who-is-securing-his-250-million-bond" target="_blank" rel="noopener">pleaded</a> not guilty even as other former executives admit their guilt.
Bankman-Fried has been released on a $250 million bond and is currently <a href="https://www.dailywire.com/news/the-4-million-california-home-where-sam-bankman-fried-is-spending-his-house-arrest" target="_blank" rel="noopener">permitted</a> to stay at his parents’ home in northern California. United States District Judge Lewis Kaplan is allowing Bankman-Fried to conceal the names and addresses of the individuals who secured his bond.
The collapse of FTX produced hesitance among customers and investors toward other firms in the nascent cryptocurrency sector. BlockFi, a lending platform, <a href="https://www.dailywire.com/news/crypto-company-blockfi-files-for-bankruptcy-after-ftx-collapse" target="_blank" rel="noopener">filed for bankruptcy</a> days after FTX was rendered insolvent, while companies such as Genesis <a href="https://www.dailywire.com/news/second-major-cryptocurrency-exchange-could-be-poised-to-go-bankrupt" target="_blank" rel="noopener">indicated</a> the looming possibility of bankruptcy. Other entities, such as Voyager and Celsius had already declared bankruptcy months earlier amid a bear market in the digital asset space. Coinbase announced plans this week to <a href="http://dailywire.com/topic/unemployment" target="_blank" rel="noopener">dismiss</a> roughly 20% of its employees for the second time in seven months.

FTX Bankruptcy Lawyers Reveal How Much They Have Clawed Back For Defrauded Investors

FTX Bankruptcy Lawyers Claw Back $5 Billion

Reporters asked White House Press Secretary <a href="http://dailywire.com/topic/karine-jean-pierre" target="_blank" rel="noopener">Karine Jean-Pierre</a> on Tuesday about the several meetings top <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Biden administration</a> officials held with former FTX CEO <a href="http://dailywire.com/topic/sam-bankman-fried" target="_blank" rel="noopener">Sam Bankman-Fried</a>, who faces several fraud and money laundering charges.
Bankman-Fried garnered controversy after users learned that he commingled funds between cryptocurrency exchange platform FTX and sister trading firm Alameda Research, losing untold billions’ worth of assets as customers rushed to withdraw their balances. The disgraced entrepreneur’s <a href="https://www.dailywire.com/news/officials-charge-sam-bankman-fried-of-using-customer-funds-for-lavish-real-estate-and-large-political-donations" target="_blank" rel="noopener">extensive political connections</a> came to light in the weeks after his company’s bankruptcy, including the $39 million he donated to Democrats ahead of the midterms and four <a href="https://www.dailywire.com/news/sam-bankman-fried-visited-biden-white-house-four-times-ahead-of-his-arrest" target="_blank" rel="noopener">meetings</a> he was granted at the White House with top officials Steve Richetti and Bruce Reed.
Jean-Pierre was <a href="https://www.whitehouse.gov/briefing-room/press-briefings/2023/01/03/press-briefing-by-press-secretary-karine-jean-pierre-january-3-2023/" target="_blank" rel="noopener">questioned</a> by a reporter about the meetings and asked to provide “any sort of summary of what has been discussed” during a Tuesday press briefing. She responded that officials discussed “pandemic prevention” and “general information on the cryptocurrency industry” with the former executive, adding that the administration has supported new regulations on digital assets.
“The White House regularly engages with officials from a range of industries and sectors, including leaders in business and labor and nonprofits,” Jean-Pierre remarked.
Beyond emerging as one of the top overall political contributors during the midterm elections, Bankman-Fried was the second-largest donor to the campaign which successfully placed President Joe Biden in the White House. Reporters questioned Jean-Pierre last month on whether the administration believes Democratic organizations should <a href="https://www.dailywire.com/news/white-house-wont-answer-if-theyll-give-back-donations-from-accused-fraudster-sam-bankman-fried" target="_blank" rel="noopener">return the funds</a> donated by Bankman-Fried; she declined to answer the question by invoking the Hatch Act, which limits most federal employees from certain political and campaign activities.
“That is still the case,” Jean-Pierre said on Tuesday when pressed on the matter. “I don’t have anything to share or any change of my comments that I’ve made before on this.”
Gabriel Bankman-Fried, the younger brother of Bankman-Fried and the head of the organization Guarding Against Pandemics, also participated in one of the meetings and received a rendezvous of his own. Joseph Bankman and Barbara Fried, the brothers’ parents, are <a href="https://www.dailywire.com/news/mother-of-disgraced-crypto-billionaire-sam-bankman-fried-is-a-democratic-fundraiser-who-once-wrote-essay-blasting-personal-responsibility" target="_blank" rel="noopener">well-connected</a> within Democratic circles.
The Senate Majority PAC, which exists to elect Democrats to the upper chamber of Congress, <a href="https://www.dailywire.com/news/democrats-say-they-will-return-3-million-donated-by-ftx-executives" target="_blank" rel="noopener">announced</a> plans to return $3 million donated by Bankman-Fried and Nishad Singh, who served as head of engineering for FTX. The Democratic National Committee, as well as the Democratic Senatorial Campaign Committee and the Democratic Congressional Campaign Committee, issued similar commitments as bankruptcy lawyers seek to claw back funds on behalf of customers and investors.
Among the beneficiaries of Bankman-Fried’s donations were House Democrat Leader Hakeem Jeffries (D-NY), Sen. Cory Booker (D-NJ), Sen. Joe Manchin (D-WV), Sen. Debbie Stabenow (D-MI), Sen. Dick Durbin (D-IL), and Sen. Patty Murray (D-WA).
Bankman-Fried pleaded <a href="https://www.dailywire.com/news/sam-bankman-fried-pleads-not-guilty-allowed-to-conceal-who-is-securing-his-250-million-bond" target="_blank" rel="noopener">not guilty</a> on Tuesday to eight charges, which include conspiracy to commit wire fraud, conspiracy to commit securities fraud, and conspiracy to defraud the Federal Election Commission through campaign finance violations. Mark Cohen, a lawyer for Bankman-Fried who formerly <a href="https://www.dailywire.com/news/sam-bankman-fried-hires-attorney-who-defended-epstein-confidant-ghislaine-maxwell" target="_blank" rel="noopener">defended</a> Jeffrey Epstein confidant Ghislaine Maxwell, successfully requested that U.S. District Judge Lewis Kaplan permit the sealing of the names and addresses of two individuals who secured Bankman-Fried’s $250 million bond due to attention drawn to the case, which has dominated headlines for more than two months.

White House Media Briefing Held By Press Secretary Karine Jean-Pierre

Karine Jean-Pierre Pressed On Why Sam Bankman-Fried Visited The White House Four Times

Karine Jean-Pierre Asked Why Sam Bankman-Fried Visited White House

Karine Jean-Pierre

White House

Former FTX CEO <a href="http://dailywire.com/topic/sam-bankman-fried" target="_blank" rel="noopener">Sam Bankman-Fried</a> pleaded not guilty to multiple charges stemming from the collapse of his <a href="http://dailywire.com/topic/cryptocurrency" target="_blank" rel="noopener">cryptocurrency</a> empire.
The 30-year-old former billionaire garnered controversy after users learned that he commingled funds between exchange platform FTX and sister trading firm Alameda Research, losing untold billions&#8217; worth of assets as customers rushed to withdraw their balances. Bankman-Fried pleaded <a href="https://www.dailywire.com/news/sam-bankman-fried-set-to-plead-not-guilty-report" target="_blank" rel="noopener">not guilty</a> on Tuesday to eight charges, which include conspiracy to commit wire fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering.
Reporters and journalists swarmed a black SUV carrying Bankman-Fried to a courthouse in Manhattan; Barbara Fried, the mother of the disgraced entrepreneur and a prolific Democratic fundraiser, fell to the wet pavement amid the commotion, according to a <a href="https://www.cnbc.com/2023/01/03/sam-bankman-fried-pleads-not-guilty-to-fraud-charges-in-new-york.html" target="_blank" rel="noopener">report</a> from CNBC.
Bankman-Fried was recently released on a $250 million bond and <a href="https://www.dailywire.com/news/the-4-million-california-home-where-sam-bankman-fried-is-spending-his-house-arrest" target="_blank" rel="noopener">permitted</a> to stay at his parents’ home in northern California near the campus of Stanford University. Caroline Ellison, the former chief executive of Alameda Research, and Gary Wang, a co-founder of FTX, have already <a href="https://www.dailywire.com/news/breaking-former-top-ftx-executives-plead-guilty-to-federal-charges-in-fraud-case" target="_blank" rel="noopener">submitted</a> guilty pleas. Reports have speculated that Ellison, a former romantic interest of Bankman-Fried, may have cooperated with prosecutors.
U.S. District Judge Lewis Kaplan tentatively established a trial date for October during the arraignment, according to a <a href="https://twitter.com/innercitypress/status/1610351512621826055" target="_blank" rel="noopener">report</a> from journalist Matthew Russell Lee. Mark Cohen, a lawyer for Bankman-Fried who formerly <a href="https://www.dailywire.com/news/sam-bankman-fried-hires-attorney-who-defended-epstein-confidant-ghislaine-maxwell" target="_blank" rel="noopener">defended</a> Jeffrey Epstein confidant Ghislaine Maxwell, requested that Kaplan permit the sealing of the names and addresses of two individuals who secured the $250 million bond due to attention drawn to the case, which has dominated headlines for more than two months. Kaplan approved the motion.
Bankman-Fried is by no means short on allies: extensive political contributions made by the former executive rendered him the seventh-largest overall donor in the recent midterm elections and the second-largest donor to the campaign which placed President Joe Biden in the Oval Office, according to <a href="https://www.opensecrets.org/outside-spending/top_donors/2022?disp=D&amp;type=V&amp;superonly=N" target="_blank" rel="noopener">data</a> from Open Secrets. He claimed during a recent <a href="https://www.dailywire.com/news/i-dont-even-know-how-to-code-mit-grad-and-now-broke-crypto-ceo-sam-bankman-fried-tells-niche-vlogger" target="_blank" rel="noopener">interview</a> that he donated “about the same amount” in dark money to Republicans.
Among the beneficiaries of Bankman-Fried’s donations were incoming House Minority Leader Hakeem Jeffries (D-NY), Sen. Cory Booker (D-NJ), Sen. Joe Manchin (D-WV), Sen. Debbie Stabenow (D-MI), Sen. Dick Durbin (D-IL), and Sen. Patty Murray (D-WA).
Bankman-Fried, who faces 115 years in prison if he is convicted on all counts, was <a href="https://www.dailywire.com/news/sam-bankman-fried-visited-biden-white-house-four-times-ahead-of-his-arrest" target="_blank" rel="noopener">granted audiences</a> at the White House with senior administration officials in the months before his arrest, according to a recent <a href="https://www.bloomberg.com/news/articles/2022-12-29/bankman-fried-met-white-house-aides-in-pre-collapse-crypto-push?utm_content=crypto&amp;utm_source=twitter&amp;utm_medium=social&amp;utm_campaign=socialflow-organic&amp;leadSource=uverify%20wall" target="_blank" rel="noopener">report</a> from Bloomberg. Gabriel Bankman-Fried, his younger brother and the head of the organization Guarding Against Pandemics, joined one of the meetings and received a rendezvous of his own.
The entrepreneur was <a href="https://www.dailywire.com/news/breaking-democrat-megadonor-sam-bankman-fried-arrested-in-bahamas-faces-criminal-charges-in-u-s" target="_blank" rel="noopener">detained</a> last month by authorities in the Bahamas, where his companies were headquartered, and subsequently <a href="https://www.dailywire.com/news/u-s-law-enforcement-takes-sam-bankman-fried-into-custody-report" target="_blank" rel="noopener">extradited</a> to the United States.
A <a href="https://www.scb.gov.bs/wp-content/uploads/2022/12/SCB-seeks-court-direction-Press-Release-29Dec22-Final.pdf" target="_blank" rel="noopener">statement</a> from the Securities Commission of the Bahamas confirmed that the agency “took the action of directing the transfer of all digital assets” managed by the company, amounting to $3.5 billion in cryptocurrencies, to government-controlled digital wallets “for safekeeping” as reports of potential cyberattacks began to circulate. The transfer occurred on November 12, the day after FTX filed for bankruptcy in the United States. The assets are held by the agency “on a temporary basis” until the Bahamian Supreme Court decides how the assets should be handled.

FTX Founder Sam Bankman-Fried Appears In New York Court For Arraignment Hearing

Sam Bankman-Fried Pleads Not Guilty, Allowed To Conceal Who Is Securing His $250 Million Bond

Sam Bankman-Fried Pleads Not Guilty

New York City

Scandals

Disgraced entrepreneur <a href="http://dailywire.com/topic/sam-bankman-fried" target="_blank" rel="noopener">Sam Bankman-Fried</a> plans to submit a plea of “not guilty” to various fraud and money laundering charges on Tuesday.
The 30-year-old former billionaire garnered controversy after it was revealed that he commingled funds between cryptocurrency exchange FTX and sister trading firm Alameda Research, losing untold billions’ worth of client assets. He is expected to deny guilt before U.S. District Judge Lewis Kaplan in Manhattan, according to a <a href="https://www.reuters.com/legal/bankman-fried-set-enter-initial-not-guilty-plea-ftx-fraud-case-source-2022-12-30/?rpc=401&amp;" target="_blank" rel="noopener">report</a> from Reuters.
Caroline Ellison, the former chief executive of Alameda Research, and Gary Wang, a co-founder of FTX, have already <a href="https://www.dailywire.com/news/breaking-former-top-ftx-executives-plead-guilty-to-federal-charges-in-fraud-case" target="_blank" rel="noopener">submitted</a> guilty pleas.
“Let me reiterate a call that I made last week. If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it,” Damien Williams, the United States Attorney for the Southern District of New York, said in a statement announcing their decision. “We are moving quickly, and our patience is not eternal.”
Bankman-Fried was recently released on a $250 million bond and <a href="https://www.dailywire.com/news/the-4-million-california-home-where-sam-bankman-fried-is-spending-his-house-arrest" target="_blank" rel="noopener">permitted</a> to stay at his parents’ home in northern California. Joseph Bankman and Barbara Fried’s equity in the property, which is valued at a total of $4 million, is currently serving as collateral for the bond.
The would-be cryptocurrency wunderkind has been <a href="https://www.justice.gov/usao-sdny/pr/united-states-attorney-announces-charges-against-ftx-founder-samuel-bankman-fried" target="_blank" rel="noopener">indicted</a> by Williams of conspiracy to commit wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to defraud the Federal Election Commission through campaign finance violations.
Bankman-Fried was located in the Bahamas, where he ran FTX and Alameda Research alongside his amateur colleagues when news of possible fraudulent activity at his companies made headlines. He was <a href="https://www.dailywire.com/news/sam-bankman-fried-agrees-to-be-extradited-to-the-united-states" target="_blank" rel="noopener">extradited</a> to the United States last month after a brief stint in Fox Hill Prison, the small island nation’s only government detention center, which a <a href="https://www.state.gov/reports/2021-country-reports-on-human-rights-practices/bahamas/" target="_blank" rel="noopener">report</a> from the State Department characterized as harsh due to “overcrowding, poor nutrition, inadequate sanitation, and inadequate medical care.”
The collapse of the cryptocurrency empire led by Bankman-Fried created a media firestorm as the entrepreneur’s extensive political contributions came into the public eye. He was the second-largest donor to the campaign which placed President Joe Biden in the Oval Office more than two years ago, as well as the seventh-largest overall donor in the most recent midterm elections, during which he contributed nearly $39 million to various Democratic campaigns, according to <a href="https://www.opensecrets.org/outside-spending/top_donors/2022?disp=D&amp;type=V&amp;superonly=N" target="_blank" rel="noopener">data</a> from Open Secrets. He claimed during a recent <a href="https://www.dailywire.com/news/i-dont-even-know-how-to-code-mit-grad-and-now-broke-crypto-ceo-sam-bankman-fried-tells-niche-vlogger" target="_blank" rel="noopener">interview</a> that he contributed “about the same amount” in dark money to Republicans.
Bankman-Fried, who faces 115 years behind bars if he is convicted on all counts, was <a href="https://www.dailywire.com/news/sam-bankman-fried-visited-biden-white-house-four-times-ahead-of-his-arrest" target="_blank" rel="noopener">granted audiences</a> at the White House with senior administration officials in the months preceding his arrest, according to a <a href="https://www.bloomberg.com/news/articles/2022-12-29/bankman-fried-met-white-house-aides-in-pre-collapse-crypto-push?utm_content=crypto&amp;utm_source=twitter&amp;utm_medium=social&amp;utm_campaign=socialflow-organic&amp;leadSource=uverify%20wall" target="_blank" rel="noopener">report</a> from Bloomberg. Gabriel Bankman-Fried, the head of the foundation Guarding Against Pandemics and the brother of the former entrepreneur, partook in a meeting at the White House of his own and joined in one of the meetings with his sibling.
John Ray III, the lawyer overseeing the FTX bankruptcy proceedings, has vowed to <a href="https://www.dailywire.com/news/top-dems-on-hook-as-new-ftx-boss-vows-to-claw-back-crypto-exchanges-donations" target="_blank" rel="noopener">claw back</a> payments made by Bankman-Fried and his associates with fraudulently obtained revenues. Among the beneficiaries of Bankman-Fried’s donations were incoming House Minority Leader Hakeem Jeffries (D-NY), Sen. Cory Booker (D-NJ), Sen. Joe Manchin (D-WV), Sen. Debbie Stabenow (D-MI, Sen. Dick Durbin (D-IL), and Sen. Patty Murray (D-WA).

Sam Bankman-Fried Set To Plead ‘Not Guilty’: Report

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