- Sam is out on a $250 million bond.
- Caroline Ellison and Gary Wang have pleaded guilty and are cooperating.
- SBF could plead guilty, plead not guilty or no contest.
Finally, after months of turmoil, the dust seems to be settling on the FTX saga, as the former white knight of the crypto industry, infamous ex-CEO of FTX Sam Bankman-Fried, is likely to enter a plea deal.
On January 2, 2023, Sam Bankman-Fried is expected to appear at the Manhattan Federal court. He will face United States District Judge Lewis Kaplan, who will take over the case. Lewis also presided over writer E.Jean Carroll’s lawsuit against former president Donald Trump for allegedly attacking her reputation by denying rape allegations. The FTX case was earlier to be judged by Ronnie Abrams, though she stepped down after her husband, a partner at Davis Polk & Wardwell LLP, had advised FTX on various occasions.
Sam Bankman-Fried is accused of the following charges.
- Wire Fraud.
- Conspiracy to commit wire fraud.
- Conspiracy to commit commodities fraud.
- Conspiracy to commit money laundering.
- Conspiracy to defraud the Federal Election Commission and commit campaign finance violation.
Sam Bankman-Fried was arrested on December 12, 2022, in the Bahamas, was brought to the US on December 21, 2022, and is now out on the biggest bail amount of $250 million. Alameda’s Caroline Ellison and former CTO Gary Wang were added to the defendant list on December 19, 2022; they have pleaded guilty to several charges and are now cooperating with federal officials.
Sam was also accused of donating almost $40 million to politicians during midterm elections, trying to lobby his benefits in the upcoming crypto regulation bill called The Digital Asset Anti-Money Laundering Act. The act was supposed to regulate crypto assets in the country, and Sam wanted the laws to be tweaked in his favor. Politicians who do not want to be named are now pledging to return the money.
United States Attorney for the Southern District of New York, Damian Williams, filed an indictment against Sam Bankman-Fried on December 9, 2022. Almost one month after, the infamous crypto exchange filed for chapter 11 bankruptcy in Delaware on November 11, 2022, along with Alameda and 130 other entities.
Currently, Sam is out on a $250 million bond and living with his parents in California.
Sam Bankman-Fried has three options: either he pleads guilty, pleads not guilty, or he can decide not to contest. If he “pleads guilty,” it will mean that he admits all the presented facts are right and confess the crimes.
If SBF “pleads not guilty,” it means that he does not agree with the presented facts and does not confess to the crimes.
If SBF decides “no contest,” it will mean that he admits the presented facts can prove him guilty, but he does not accept the guilt.
Guilty or No Contest will move the case to the sentencing phase, where the Judge will determine the sentence based on various factors. The prosecution could agree to judge for a particular sentence or make a plea bargain. Accepting this will mean pleading guilty.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/12/29/sbf-likely-to-apt-for-plea-deal-whats-ahead-for-former-white-knight/