<p>FTX founder Sam Bankman-Fried has been found guilty on all charges, including defrauding customers of his now-bankrupt cryptocurrency exchange in one of the biggest financial frauds on record, on Thursday (Nov 2).&nbsp;</p>

<p>The 12-member jury in Manhattan federal court moved to convict the 31-year-old former billionaire on all seven counts he faced after a months-long trial.&nbsp;</p>

<p>Bankman-Fried has been charged with seven counts of fraud, conspiracy and money laundering in what federal prosecutors have called “one of the biggest financial frauds in American history.”</p>

<p>In the months-long case, prosecutors argued that Bankman-Fried stole $8 billion from the exchange’s customers out of sheer greed.&nbsp;</p>

<p>“Find him guilty,” prosecutor Danielle Sassoon told the jury earlier. “He was ambitious” and had “the arrogance to think that he could get away with a fraud,” she added.</p>

<h2>What happened in the court?</h2>

<p>The jury’s verdict came after some four hours of deliberation and also nearly a year after&nbsp;FTX filed for bankruptcy in a swift corporate meltdown which shocked financial markets.&nbsp;</p>

<p><strong>ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/sam-bankman-fried-takes-witness-stand-at-his-own-fraud-trial-651699">Sam Bankman-Fried takes witness stand at his own fraud trial</a></strong></p>

<p>Bankman-Fried, who had pleaded not guilty to two counts of fraud and five counts of conspiracy, was seen facing the jury with his hands clasped in front of him as the verdict was being read. He sat with his head in his hands after the verdict.&nbsp;</p>

<p>The verdict also marks a win for the US Justice Department and Damian Williams, the top federal prosecutor in Manhattan, who has sought to rid financial markets of corruption.&nbsp;</p>

<p>“The crypto industry might be new, the players like Sam Bankman-Fried may be new, but this kind of fraud is as old as time and we have no patience for it,” Williams told reporters outside the courtroom.</p>

<p>Bankman-Fried, whose conviction on all charges could lead to a sentence of up to 110 years in prison, was seen exiting the Manhattan federal courtroom Thursday night with his head down. US District Judge Lewis Kaplan has set the once-crypto mogul’s sentencing for March 28, 2024.&nbsp;</p>

<p>Bankman-Fried’s defence lawyer Mark Cohen following the verdict, in a statement, said he was “disappointed” but respected the jury’s decision, adding that the former FTX chief “maintains his innocence and will continue to vigorously fight the charges against him.”&nbsp;</p>

<p><strong>ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/deeply-regret-ftx-founder-sam-bankman-fried-faces-intense-scrutiny-in-fraud-trial-653768">'Deeply regret': FTX founder Sam Bankman-Fried faces intense scrutiny in fraud trial</a></strong></p>

<h2><strong>About the trial</strong></h2>

<p>The trial revolves around accusations of FTX defrauding its customers to support its Alameda Research hedge fund, and making substantial donations to political campaigns in the United States.&nbsp;</p>

<p>He was also accused of using customer deposits on his crypto trading platform to cover losses at his hedge fund, pay off loans and even buy real estate, among other expenses.</p>

<p>Earlier this week, in his latest testimony, Bankman-Fried expressed “regret” for failing to investigate the billion-dollar debt his hedge fund borrowed from the cryptocurrency exchange before its collapse last November.&nbsp;</p>

<p><strong>ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/ftx-sues-its-own-founder-sam-bankman-fried-to-recover-over-1-bn-617976">FTX sues its own founder Sam Bankman-Fried to recover over $1 bn</a></strong></p>

<p>The jury also heard 15 days of testimony from former Alameda CEO Caroline Ellison and former FTX executives Gary Wang and Nishad Singh who were testifying for the prosecution after entering guilty pleas. All three of them have not yet been sentenced.&nbsp;</p>

<h2><strong>What now?</strong></h2>

<p>Bankman-Fried is also set to go on trial on a second set of charges brought by prosecutors which includes alleged foreign bribery and bank fraud conspiracies.</p>

<p><em>(With inputs from agencies)</em></p>


FTX founder Sam Bankman-Fried has been found guilty on all charges, including defrauding customers of his now-bankrupt cryptocurrency exchange in one of the biggest financial frauds on record, on Thursday (Nov 2).

FTX founder Sam Bankman-Fried has been found guilty on all charges, including defrauding customers of his now-bankrupt cryptocurrency exchange in one of the biggest financial frauds on record, on Thursday (Nov 2). The 12-member jury in Manhattan federal court moved to convict the 31-year-old former billionaire on all seven counts he faced after a months-long trial. Bankman-Fried has been charged with seven counts of fraud, conspiracy and money laundering in what federal prosecutors have called “one of the biggest financial frauds in American history.” In the months-long case, prosecutors argued that Bankman-Fried stole $8 billion from the exchange’s customers out of sheer greed. “Find him guilty,” prosecutor Danielle Sassoon told the jury earlier. “He was ambitious” and had “the arrogance to think that he could get away with a fraud,” she added. What happened in the court? The jury’s verdict came after some four hours of deliberation and also nearly a year after FTX filed for bankruptcy in a swift corporate meltdown which shocked financial markets. ALSO READ | Sam Bankman-Fried takes witness stand at his own fraud trial Bankman-Fried, who had pleaded not guilty to two counts of fraud and five counts of conspiracy, was seen facing the jury with his hands clasped in front of him as the verdict was being read. He sat with his head in his hands after the verdict. The verdict also marks a win for the US Justice Department and Damian Williams, the top federal prosecutor in Manhattan, who has sought to rid financial markets of corruption. “The crypto industry might be new, the players like Sam Bankman-Fried may be new, but this kind of fraud is as old as time and we have no patience for it,” Williams told reporters outside the courtroom. Bankman-Fried, whose conviction on all charges could lead to a sentence of up to 110 years in prison, was seen exiting the Manhattan federal courtroom Thursday night with his head down. US District Judge Lewis Kaplan has set the once-crypto mogul’s sentencing for March 28, 2024. Bankman-Fried’s defence lawyer Mark Cohen following the verdict, in a statement, said he was “disappointed” but respected the jury’s decision, adding that the former FTX chief “maintains his innocence and will continue to vigorously fight the charges against him.” ALSO READ | 'Deeply regret': FTX founder Sam Bankman-Fried faces intense scrutiny in fraud trial About the trial The trial revolves around accusations of FTX defrauding its customers to support its Alameda Research hedge fund, and making substantial donations to political campaigns in the United States. He was also accused of using customer deposits on his crypto trading platform to cover losses at his hedge fund, pay off loans and even buy real estate, among other expenses. Earlier this week, in his latest testimony, Bankman-Fried expressed “regret” for failing to investigate the billion-dollar debt his hedge fund borrowed from the cryptocurrency exchange before its collapse last November. ALSO READ | FTX sues its own founder Sam Bankman-Fried to recover over $1 bn The jury also heard 15 days of testimony from former Alameda CEO Caroline Ellison and former FTX executives Gary Wang and Nishad Singh who were testifying for the prosecution after entering guilty pleas. All three of them have not yet been sentenced. What now? Bankman-Fried is also set to go on trial on a second set of charges brought by prosecutors which includes alleged foreign bribery and bank fraud conspiracies. (With inputs from agencies)

FTX founder Sam Bankman-Fried found guilty of defrauding customers

<p>Two American Sams have dominated global headlines over the past few months. On one hand, we had FTX’s Sam Bankman-Fried, who went from being America’s crypto king to an alleged fraudster within weeks. The 30-year-old panjandrum had all fortunes to his name, including a cryptocurrency exchange called FTX, a trading firm called Alameda Research, and massive wealth worth $15.6 billion.&nbsp;</p>

<h2><strong>The fall of Sam Bankman-Fried</strong></h2>

<p>But the world turned upside down for Sam Bankman-Fried or SBF within a week in November last year. A leaked balance sheet of Alameda showed the company stood on shaky financial grounds. His FTX collapsed following a ravaging crypto run, where a lot of customers rushed to withdraw their funds immediately.&nbsp;</p>

<p>FTX filed for bankruptcy and SBF’s worth came close to nothing. Sam Bankman-Fried now finds himself surrounded by legal troubles where he is accused of illegally taking $10 billion in FTX’s customers' funds for his trading firm.</p>

<h2><strong>The other Sam, basking in AI glory</strong></h2>

<p>Now, we will be talking about the other Sam of America, the face of the AI revolution which has taken the world by storm: Sam Altman of OpenAI. More than a decade old personality of Silicon Valley, Altman has established himself as the tech titan of the Artificial Intelligence space.&nbsp;</p>

<p>Sam Altman describes himself as an entrepreneur, investor and programmer. He was the president of Y Combinator and CEO of Reddit for a short period of time. He co-founded Loopt in 2005, and he is the current CEO of OpenAI, the parent company of chatbot ChatGPT.&nbsp;</p>

<h2><strong>Sam Altman: The startup Guru of America</strong></h2>

<p>Since the launch of ChatGPT, Sam Altman has been looking forward to aggressively expanding his tech empire, with crypto being the latest space the 38-year-old billionaire is wading into. Reports indicate that Altman is very close to raising a substantial £100 million in funding for his cryptocurrency initiative Worldcoin, founded in early 2020.&nbsp;</p>

<p>The company’s goal is “to provide a fraction of a digital token to every person worldwide.” Worldcoin, a tech-savvy company, is believed to have employed iris-scanning technology to authenticate individuals and reward them with tokens.</p>

<p>After all, Sam Altman is called the startup Guru for a reason.</p>

<p><strong>Also Read:&nbsp;<a href="https://www.wionews.com/technology/chatgpts-sam-altman-urges-us-lawmakers-to-regulate-artificial-intelligence-593096">ChatGPT`s Sam Altman urges US lawmakers to regulate artificial intelligence</a></strong></p>

<p>While Altman was at Y Combinator (YC), the company helped launch and support numerous successful startups, including Airbnb, Dropbox, Stripe, and Reddit.&nbsp;</p>

<p>He has written extensively on startups, technology, and entrepreneurship, aimed at providing guidance to aspiring founders.&nbsp;</p>

<p>Altman has made numerous investments in startups, both as an individual and through Y Combinator's funding activities. His investment portfolio includes successful companies like Airbnb, Stripe, Reddit, OpenAI, and many others.</p>

<p>Altman's position in the startup ecosystem has allowed him to build a vast network of influential entrepreneurs, investors, and industry leaders.</p>

<h2><strong>Will Altman rein in the raging AI horse?</strong></h2>

<p>Having said that, it’s true that Altman is now leading one such technology even he himself knows a little about: Artificial Intelligence. Some have equated AI with a ticking time bomb and the biggest threat to humanity. Governments are calling for regulating the technology, and some have even rushed to ban it altogether.&nbsp;</p>

<p>Sam Altman also believes that the technology needs intervention by governments. "I think if this technology goes wrong, it can go quite wrong...we want to be vocal about that," Altman said, adding, "We want to work with the government to prevent that from happening."</p>

<p>In practical terms, ChatGPT has already started impacting humanity, it is eating up jobs, it is being blamed for displaying political biases and some are even crediting the chatbot for a rise in misinformation on the internet. Now, Altman has left it for the governments to tame the disruptive technology, simply because even he himself doesn’t know the boundaries of the ramifications his product can have on humanity.</p>

<h2><strong>Will both Sams end up in the same boat?</strong></h2>

<p>OpenAI has already fallen prey to intense government scrutiny. Sam Bankman-Fried had agreed to testify before the House Financial Services Committee for his alleged fraudulent actions at FTX. On the other hand, Sam Altman has already faced Senate Judiciary Subcommittee on Privacy, Technology and the Law over the urgent need to regulate Artificial Intelligence.</p>

<p><strong>Watch: ChatGPT creator and CEO of OpenAI Sam Altman testifies in US Senate</strong></p>

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<p>Altman acknowledged that “his worst fears are that [the AI industry] cause significant harm to the world”. He also proposed an international AI regulation authority, which would be obviously led by the US. But lawmakers continue to call AI “a bull in a China shop.”</p>

<p>It means that the future of AI and its leaders like Sam Altman hangs in balance as regulatory hurdles continue to pile up. The stakes are high since the future of humanity appears closely tied to the future of AI. Altman may be riding high on the massive wave of the AI revolution, but a failure to overlook the impending challenges will not only inflict great harm on humanity but might also lead to a disastrous and uncontrolled evolution of the technology. &nbsp;</p>

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Two American Sams have dominated global headlines over the past few months. On one hand, we had FTX’s Sam Bankman-Fried, who went from being America’s crypto king to an alleged fraudster within weeks.

Two American Sams have dominated global headlines over the past few months. On one hand, we had FTX’s Sam Bankman-Fried, who went from being America’s crypto king to an alleged fraudster within weeks. The 30-year-old panjandrum had all fortunes to his name, including a cryptocurrency exchange called FTX, a trading firm called Alameda Research, and massive wealth worth $15.6 billion. The fall of Sam Bankman-Fried But the world turned upside down for Sam Bankman-Fried or SBF within a week in November last year. A leaked balance sheet of Alameda showed the company stood on shaky financial grounds. His FTX collapsed following a ravaging crypto run, where a lot of customers rushed to withdraw their funds immediately. FTX filed for bankruptcy and SBF’s worth came close to nothing. Sam Bankman-Fried now finds himself surrounded by legal troubles where he is accused of illegally taking $10 billion in FTX’s customers' funds for his trading firm. The other Sam, basking in AI glory Now, we will be talking about the other Sam of America, the face of the AI revolution which has taken the world by storm: Sam Altman of OpenAI. More than a decade old personality of Silicon Valley, Altman has established himself as the tech titan of the Artificial Intelligence space. Sam Altman describes himself as an entrepreneur, investor and programmer. He was the president of Y Combinator and CEO of Reddit for a short period of time. He co-founded Loopt in 2005, and he is the current CEO of OpenAI, the parent company of chatbot ChatGPT. Sam Altman: The startup Guru of America Since the launch of ChatGPT, Sam Altman has been looking forward to aggressively expanding his tech empire, with crypto being the latest space the 38-year-old billionaire is wading into. Reports indicate that Altman is very close to raising a substantial £100 million in funding for his cryptocurrency initiative Worldcoin, founded in early 2020. The company’s goal is “to provide a fraction of a digital token to every person worldwide.” Worldcoin, a tech-savvy company, is believed to have employed iris-scanning technology to authenticate individuals and reward them with tokens. After all, Sam Altman is called the startup Guru for a reason. Also Read: ChatGPT`s Sam Altman urges US lawmakers to regulate artificial intelligence While Altman was at Y Combinator (YC), the company helped launch and support numerous successful startups, including Airbnb, Dropbox, Stripe, and Reddit. He has written extensively on startups, technology, and entrepreneurship, aimed at providing guidance to aspiring founders. Altman has made numerous investments in startups, both as an individual and through Y Combinator's funding activities. His investment portfolio includes successful companies like Airbnb, Stripe, Reddit, OpenAI, and many others. Altman's position in the startup ecosystem has allowed him to build a vast network of influential entrepreneurs, investors, and industry leaders. Will Altman rein in the raging AI horse? Having said that, it’s true that Altman is now leading one such technology even he himself knows a little about: Artificial Intelligence. Some have equated AI with a ticking time bomb and the biggest threat to humanity. Governments are calling for regulating the technology, and some have even rushed to ban it altogether. Sam Altman also believes that the technology needs intervention by governments. "I think if this technology goes wrong, it can go quite wrong...we want to be vocal about that," Altman said, adding, "We want to work with the government to prevent that from happening." In practical terms, ChatGPT has already started impacting humanity, it is eating up jobs, it is being blamed for displaying political biases and some are even crediting the chatbot for a rise in misinformation on the internet. Now, Altman has left it for the governments to tame the disruptive technology, simply because even he himself doesn’t know the boundaries of the ramifications his product can have on humanity. Will both Sams end up in the same boat? OpenAI has already fallen prey to intense government scrutiny. Sam Bankman-Fried had agreed to testify before the House Financial Services Committee for his alleged fraudulent actions at FTX. On the other hand, Sam Altman has already faced Senate Judiciary Subcommittee on Privacy, Technology and the Law over the urgent need to regulate Artificial Intelligence. Watch: ChatGPT creator and CEO of OpenAI Sam Altman testifies in US Senate × Altman acknowledged that “his worst fears are that [the AI industry] cause significant harm to the world”. He also proposed an international AI regulation authority, which would be obviously led by the US. But lawmakers continue to call AI “a bull in a China shop.” It means that the future of AI and its leaders like Sam Altman hangs in balance as regulatory hurdles continue to pile up. The stakes are high since the future of humanity appears closely tied to the future of AI. Altman may be riding high on the massive wave of the AI revolution, but a failure to overlook the impending challenges will not only inflict great harm on humanity but might also lead to a disastrous and uncontrolled evolution of the technology. WATCH WION LIVE HERE ×

Explained: The Other Sam—How Sam Altman, founder of ChatGPT, WorldCoin is the next tech wunderkind

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<p>Embattled crypto trader and co-founder of FTX Sam Bankman-Fried on Thursday in a blog post laid bare his side of the issue and said he did not 'steal' the funds.&nbsp;</p>

<p>"I didn’t steal funds, and I certainly didn’t stash billions away. Nearly all of my assets were and still are utilisable to backstop FTX customers," wrote Bankman-Fried in the highly unusual post.&nbsp;</p>

<p>The former billionaire said Alameda collapsed because it failed to hedge against an 'extreme' crash in the crypto markets.&nbsp;</p>

<p>"Alameda failed to sufficiently hedge its market exposure. &nbsp; Over the course of 2022, a series of large broad market crashes came–in stocks and in crypto–leading to a ~80% decrease in the market value of its assets."</p>

<p>The 30-year-old also added that he had a lot more to say on the topic but this was a start.&nbsp;</p>

<p>"I have a lot more to say about why Alameda failed to hedge, what happened with FTX US, what led to the Chapter 11 process, S&amp;C, and more. But at least this is a start."</p>

<p>With a court trial pending, most people would have been advised by their lawyers to keep a low profile and refrain from talking. However, Bankman-Fried in the lengthy post maintained his innocence and said he could help undo the damage.</p>

<p><a href="https://www.wionews.com/videos/ftx-founder-sam-bankman-fried-is-ready-to-face-music-544155"><strong>WATCH |&nbsp;FTX founder Sam Bankman-Fried is 'ready to face music?'</strong></a></p>

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<p><strong>Bankman-Fried pleads not guilty</strong></p>

<p>Notably, Bankman-Fried's statement comes a week after he pleaded not guilty to fraud charges at a New York federal court.&nbsp;</p>

<p>The charges vary from wire fraud to money laundering to campaign finance violations with five carrying a maximum sentence of 20 years in prison.</p>

<p>With Bankman-Fried pleading not guilty, the stage is set for a court trial which is expected to begin in October, according to federal judge Lewis Kaplan.&nbsp;</p>

<p><a href="https://www.wionews.com/world/ftx-co-founder-sam-bankman-fried-pleads-not-guilty-setting-stage-for-a-court-trial-549204" target="_blank"><strong>Read more: FTX co-founder Sam Bankman-Fried pleads not guilty to fraud, setting stage for a court trial</strong></a></p>

<p><strong>What happened to FTX?&nbsp;</strong></p>

<p>FTX filed for bankruptcy in November last year after traders rushed to remove $6 billion off the platform in only 72 hours. The fate of the company was sealed after rival exchange Binance's rescue deal fell through.</p>

<p>According to US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), Bankman-Fried masterminded the misappropriation of more than $8 billion in funds from customer accounts.&nbsp;</p>

<p><em>(With inputs from agencies)</em></p>

<p><strong>WATCH WION LIVE HERE:&nbsp;</strong></p>

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Embattled crypto trader and co-founder of FTX Sam Bankman-Fried on Thursday in a blog post laid bare his side of the issue and said he did not 'steal' the funds.

Embattled crypto trader and co-founder of FTX Sam Bankman-Fried on Thursday in a blog post laid bare his side of the issue and said he did not 'steal' the funds. "I didn’t steal funds, and I certainly didn’t stash billions away. Nearly all of my assets were and still are utilisable to backstop FTX customers," wrote Bankman-Fried in the highly unusual post. The former billionaire said Alameda collapsed because it failed to hedge against an 'extreme' crash in the crypto markets. "Alameda failed to sufficiently hedge its market exposure. Over the course of 2022, a series of large broad market crashes came–in stocks and in crypto–leading to a ~80% decrease in the market value of its assets." The 30-year-old also added that he had a lot more to say on the topic but this was a start. "I have a lot more to say about why Alameda failed to hedge, what happened with FTX US, what led to the Chapter 11 process, S&C, and more. But at least this is a start." With a court trial pending, most people would have been advised by their lawyers to keep a low profile and refrain from talking. However, Bankman-Fried in the lengthy post maintained his innocence and said he could help undo the damage. WATCH | FTX founder Sam Bankman-Fried is 'ready to face music?' × Bankman-Fried pleads not guilty Notably, Bankman-Fried's statement comes a week after he pleaded not guilty to fraud charges at a New York federal court. The charges vary from wire fraud to money laundering to campaign finance violations with five carrying a maximum sentence of 20 years in prison. With Bankman-Fried pleading not guilty, the stage is set for a court trial which is expected to begin in October, according to federal judge Lewis Kaplan. Read more: FTX co-founder Sam Bankman-Fried pleads not guilty to fraud, setting stage for a court trial What happened to FTX? FTX filed for bankruptcy in November last year after traders rushed to remove $6 billion off the platform in only 72 hours. The fate of the company was sealed after rival exchange Binance's rescue deal fell through. According to US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), Bankman-Fried masterminded the misappropriation of more than $8 billion in funds from customer accounts. (With inputs from agencies) WATCH WION LIVE HERE:

'I didn’t steal...': Sam Bankman-Fried says in a post after pleading not guilty

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<p>As expected, embattled crypto trader and co-founder of FTX Sam Bankman-Fried on Tuesday pleaded not guilty to fraud charges at a New York federal court.&nbsp;</p>

<p>The eight charges levelled on Bankman-Fried were related to the collapse of FTX and hedge fund Alameda Research.&nbsp;</p>

<p>The charges vary from wire fraud to money laundering to campaign finance violations with five carrying a maximum sentence of 20 years in prison.</p>

<p><a href="https://www.wionews.com/business-economy/as-top-democrat-donor-sam-bankman-fried-had-access-to-white-house-report-547922"><strong>Read more:&nbsp;As top Democrat donor, Sam Bankman-Fried had access to White House: Report</strong></a></p>

<p>With Bankman-Fried pleading not guilty, the stage is set for a court trial which is expected to begin in October, according to federal judge Lewis Kaplan.&nbsp;</p>

<p>The US prosecutors argued that the 30-year-old former billionaire misused the funds of FTX and Alameda Research whilst duping the customers.&nbsp;</p>

<p><a href="https://www.wionews.com/videos/ftx-founder-sam-bankman-fried-is-ready-to-face-music-544155"><strong>WATCH |&nbsp;FTX founder Sam Bankman-Fried is 'ready to face music?'</strong></a></p>

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<p>Bankman-Fried, who was regarded as a crypto genius at the time quickly went to the Bahamas to avoid scrutiny by the US authorities. It was only after the request of the federal prosecutors in New York that he was sent to a prison on the island country where he spent nine days.&nbsp;</p>

<p>Banman-Fried was released on a $250 million bail package last month only after he accepted to be extradited out of the Bahamas. During the ruling, a US magistrate judge said Bankman-Fried would have to remain under strict supervision at his parents’ home in Palo Alto, California.</p>

<p><a href="https://www.wionews.com/economy/ftx-co-founder-sam-bankman-fried-released-on-250m-bail-545702" target="_blank"><strong>Read more: FTX co-founder Sam Bankman-Fried released on $250m bail</strong></a></p>

<p>While Bankman-Fried is willing to do the whole nine yards in the court, his top lieutenants in Caroline Ellison, the former chief executive of FTX's trading affiliate Alameda Research, and Gary Wang, another FTX co-founder have already pleaded guilty.&nbsp;</p>

<p><strong>What happened to FTX?</strong></p>

<p>FTX filed for bankruptcy in November last year after traders rushed to remove $6 billion off the platform in only 72 hours. The fate of the company was sealed after rival exchange Binance's rescue deal fell through.</p>

<p>According to US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), Bankman-Fried masterminded the misappropriation of more than&nbsp;$8 billion in funds from customer accounts.&nbsp;</p>

<p>During one of the bankruptcy hearings, the attorneys representing FTX informed the court that Bankaman-Fried ran the now-bankrupt company as a 'personal fiefdom'. The attorneys said he splurged as much as $300 million on homes and vacation properties for senior staff, home and abroad.&nbsp;</p>

<p><em>(With inputs from agencies)</em></p>

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As expected, embattled crypto trader and co-founder of FTX Sam Bankman-Fried on Tuesday pleaded not guilty to fraud charges at a New York federal court. The eight charges levelled on Bankman-Fried were related to the collapse of FTX and hedge fund Alameda Research.

As expected, embattled crypto trader and co-founder of FTX Sam Bankman-Fried on Tuesday pleaded not guilty to fraud charges at a New York federal court. The eight charges levelled on Bankman-Fried were related to the collapse of FTX and hedge fund Alameda Research. The charges vary from wire fraud to money laundering to campaign finance violations with five carrying a maximum sentence of 20 years in prison. Read more: As top Democrat donor, Sam Bankman-Fried had access to White House: Report With Bankman-Fried pleading not guilty, the stage is set for a court trial which is expected to begin in October, according to federal judge Lewis Kaplan. The US prosecutors argued that the 30-year-old former billionaire misused the funds of FTX and Alameda Research whilst duping the customers. WATCH | FTX founder Sam Bankman-Fried is 'ready to face music?' × Bankman-Fried, who was regarded as a crypto genius at the time quickly went to the Bahamas to avoid scrutiny by the US authorities. It was only after the request of the federal prosecutors in New York that he was sent to a prison on the island country where he spent nine days. Banman-Fried was released on a $250 million bail package last month only after he accepted to be extradited out of the Bahamas. During the ruling, a US magistrate judge said Bankman-Fried would have to remain under strict supervision at his parents’ home in Palo Alto, California. Read more: FTX co-founder Sam Bankman-Fried released on $250m bail While Bankman-Fried is willing to do the whole nine yards in the court, his top lieutenants in Caroline Ellison, the former chief executive of FTX's trading affiliate Alameda Research, and Gary Wang, another FTX co-founder have already pleaded guilty. What happened to FTX? FTX filed for bankruptcy in November last year after traders rushed to remove $6 billion off the platform in only 72 hours. The fate of the company was sealed after rival exchange Binance's rescue deal fell through. According to US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), Bankman-Fried masterminded the misappropriation of more than $8 billion in funds from customer accounts. During one of the bankruptcy hearings, the attorneys representing FTX informed the court that Bankaman-Fried ran the now-bankrupt company as a 'personal fiefdom'. The attorneys said he splurged as much as $300 million on homes and vacation properties for senior staff, home and abroad. (With inputs from agencies) WATCH WION LIVE HERE:

FTX co-founder Sam Bankman-Fried pleads not guilty to fraud, setting stage for a court trial

<p>Customers of the failed crypto-exchange FTX on Tuesday reportedly filed a class action lawsuit against the firm and its top executives, including founder and former CEO Sam Bankman-Fried. They are seeking a declaration that FTX's holdings of digital assets belong to customers.&nbsp;This as per Reuters is the latest legal attempt to stake a claim to the diminishing assets of FTX. The firm is reportedly already at odds with liquidators in the Bahamas and Antigua as well as the bankruptcy estate of Blockfi, another failed cryptocurrency startup.</p>

<p><strong>Watch | Sam Bankman-Fried and FTX collapse; Fried yet to enter plea</strong></p>

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<p>According to the lawsuit submitted in US Bankruptcy Court in Delaware, FTX had promised to segregate customer accounts but instead allowed them to be misappropriated, so clients should be compensated first.</p>

<p>The complaint stated that "customer class members should not have to stand in line along with secured or general unsecured creditors in these bankruptcy proceedings just to share in the diminished estate assets of the FTX Group and Alameda."</p>

<p><strong>Also read |&nbsp;<a href="https://www.wionews.com/business-economy/sam-bankman-fried-flies-to-us-after-consenting-to-extradition-top-ftx-aides-plead-guilty-545317">Sam Bankman-Fried reaches US after consenting to extradition, top FTX aides plead guilty</a></strong></p>

<p>It represents more than one million FTX customers in the US and abroad and is seeking a declaration that traceable customer assets do not belong to the company. They also want that property held and traceable to the customers isn't Alameda property.</p>

<p>However, in the scenario where the court finds that the above mentioned assets are actually FTX property, then the customers should have a priority right to repayment over other creditors.</p>

<p><strong>Also read |&nbsp;<a href="https://www.wionews.com/economy/ftx-co-founder-sam-bankman-fried-released-on-250m-bail-545702">FTX co-founder Sam Bankman-Fried released on $250m bail</a></strong></p>

<p>The once promising FTX last month filed for bankruptcy halting withdrawals after customers rushed to pull holdings.</p>

<p>Its founder Bankman-Fried is facing charges of&nbsp;a "fraud of epic proportions" that allegedly included appropriating customer funds to support his Alameda Research crypto trading platform.</p>

<p><em>(With inputs from agencies)</em></p>

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Customers of the failed crypto-exchange FTX on Tuesday reportedly filed a class action lawsuit against the firm and its top executives, including founder and former CEO Sam Bankman-Fried.

Customers of the failed crypto-exchange FTX on Tuesday reportedly filed a class action lawsuit against the firm and its top executives, including founder and former CEO Sam Bankman-Fried. They are seeking a declaration that FTX's holdings of digital assets belong to customers. This as per Reuters is the latest legal attempt to stake a claim to the diminishing assets of FTX. The firm is reportedly already at odds with liquidators in the Bahamas and Antigua as well as the bankruptcy estate of Blockfi, another failed cryptocurrency startup. Watch | Sam Bankman-Fried and FTX collapse; Fried yet to enter plea According to the lawsuit submitted in US Bankruptcy Court in Delaware, FTX had promised to segregate customer accounts but instead allowed them to be misappropriated, so clients should be compensated first. The complaint stated that "customer class members should not have to stand in line along with secured or general unsecured creditors in these bankruptcy proceedings just to share in the diminished estate assets of the FTX Group and Alameda." Also read | Sam Bankman-Fried reaches US after consenting to extradition, top FTX aides plead guilty It represents more than one million FTX customers in the US and abroad and is seeking a declaration that traceable customer assets do not belong to the company. They also want that property held and traceable to the customers isn't Alameda property. However, in the scenario where the court finds that the above mentioned assets are actually FTX property, then the customers should have a priority right to repayment over other creditors. Also read | FTX co-founder Sam Bankman-Fried released on $250m bail The once promising FTX last month filed for bankruptcy halting withdrawals after customers rushed to pull holdings. Its founder Bankman-Fried is facing charges of a "fraud of epic proportions" that allegedly included appropriating customer funds to support his Alameda Research crypto trading platform. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Customers of failed crypto-exchange FTX file class action lawsuit laying claim to firm’s assets

<p>A plane that was reportedly&nbsp;carrying Sam Bankman-Fried, the FTX founder and a former cryptocurrency mogul,&nbsp;arrived in Westchester County, New York on Wednesday.&nbsp;Bankman-Fried decided to agree to extradition in part out of a "desire to make the relevant customers whole," as per a court filing&nbsp;dated December 20.</p>

<p>Bankman-Fried departed the Bahamas late Wednesday, according to local television Eyewitness News. He is due to appear in a Manhattan court as soon as Thursday morning, Financial Times reported.</p>

<p><strong>WATCH |&nbsp;<a href="https://www.wionews.com/videos/us-ftx-founder-to-agree-to-extradition-sam-bankman-fried-appears-before-bahamas-court-544775">US: FTX founder to agree to extradition, Sam Bankman-Fried appears before Bahamas court</a></strong></p>

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<p>Bankman-Fried, a Bahamas permanent resident, spent the past nine days in Nassau's Fox Hill prison, weighing his choices before telling a magistrate court on Wednesday that he would not fight extradition. A court in Manhattan has charged him of engaging in a scheme to defraud FTX customers by using billions of dollars in deposits to pay for expenses and debts and to make investments for his crypto hedge fund, Alameda Research LLC.</p>

<p><strong>ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/how-a-secret-software-change-allowed-ftx-to-use-client-money-542963">How a secret software code change allowed FTX to (mis)use client money</a></strong></p>

<p>A statement by Bahamas Attorney General Ryan Pinder said Bankman-Fried had waived his right to challenge the extradition.</p>

<p>In a separate statement, the Ministry of Foreign Affairs said Minister Frederick Mitchell had signed a warrant for Bankman-Fried's surrender to US authorities under a bilateral extradition treaty.</p>

<p><strong>FTX fallout: Bankman-Fried's top lieutenants plead guilty</strong></p>

<p>The US prosecutors charged two of Sam Bankman-Fried's closest FTX colleagues on Wednesday, in connection with their roles in the alleged fraud that heralded the collapse of FTX.</p>

<p>Caroline Ellison, the former chief executive of FTX's trading affiliate Alameda Research, and Gary Wang, another FTX co-founder, pleaded guilty, the US attorney for the Southern District of New York announced late on Wednesday.&nbsp;</p>

<p>FTX has filed for bankruptcy, following which many of its investors told the media that they are unable to withdraw funds. According to a Manhattan court filing, FTX owed its 50 largest creditors almost $3.1 billion in credit.&nbsp;</p>

<p>Bankman-Fried was once cited as a young version of the marvellous US investor Warren Buffett. Bankman-Fried had an estimated net worth of over $15 billion as recently as late October.&nbsp;<br />
<br />
<em>(With inputs from agencies)</em></p>

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A plane that was reportedly carrying Sam Bankman-Fried, the FTX founder and a former cryptocurrency mogul, arrived in Westchester County, New York on Wednesday. Bankman-Fried decided to agree to extradition in part out of a "desire to make the relevant customers whole," as per a court filing dated December 20.

A plane that was reportedly carrying Sam Bankman-Fried, the FTX founder and a former cryptocurrency mogul, arrived in Westchester County, New York on Wednesday. Bankman-Fried decided to agree to extradition in part out of a "desire to make the relevant customers whole," as per a court filing dated December 20. Bankman-Fried departed the Bahamas late Wednesday, according to local television Eyewitness News. He is due to appear in a Manhattan court as soon as Thursday morning, Financial Times reported. WATCH | US: FTX founder to agree to extradition, Sam Bankman-Fried appears before Bahamas court × Bankman-Fried, a Bahamas permanent resident, spent the past nine days in Nassau's Fox Hill prison, weighing his choices before telling a magistrate court on Wednesday that he would not fight extradition. A court in Manhattan has charged him of engaging in a scheme to defraud FTX customers by using billions of dollars in deposits to pay for expenses and debts and to make investments for his crypto hedge fund, Alameda Research LLC. ALSO READ | How a secret software code change allowed FTX to (mis)use client money A statement by Bahamas Attorney General Ryan Pinder said Bankman-Fried had waived his right to challenge the extradition. In a separate statement, the Ministry of Foreign Affairs said Minister Frederick Mitchell had signed a warrant for Bankman-Fried's surrender to US authorities under a bilateral extradition treaty. FTX fallout: Bankman-Fried's top lieutenants plead guilty The US prosecutors charged two of Sam Bankman-Fried's closest FTX colleagues on Wednesday, in connection with their roles in the alleged fraud that heralded the collapse of FTX. Caroline Ellison, the former chief executive of FTX's trading affiliate Alameda Research, and Gary Wang, another FTX co-founder, pleaded guilty, the US attorney for the Southern District of New York announced late on Wednesday. FTX has filed for bankruptcy, following which many of its investors told the media that they are unable to withdraw funds. According to a Manhattan court filing, FTX owed its 50 largest creditors almost $3.1 billion in credit. Bankman-Fried was once cited as a young version of the marvellous US investor Warren Buffett. Bankman-Fried had an estimated net worth of over $15 billion as recently as late October. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Sam Bankman-Fried reaches US after consenting to extradition, top FTX aides plead guilty

<p>Former FTX Chief Executive Sam Bankman-Fried may no more fight against extradition from Bahamas to the United States. The 30-year-old former cryptocurrency mogul will appear in a Bahamas court on Monday where he is expected to reverse his decision to contest extradition to the United States, where he faces fraud charges on at least a dozen counts, a person familiar with the matter was cited as saying by Reuters.</p>

<p>It was not immediately clear what prompted Bankman-Fried to change his mind and decide not to contest extradition.</p>

<p><strong>ALSO READ -&nbsp;<a href="https://www.wionews.com/business-economy/how-a-secret-software-change-allowed-ftx-to-use-client-money-542963">How a secret software code change allowed FTX to (mis)use client money</a></strong></p>

<p>Bankman-Fried was indicted in a United States federal court in New York on Tuesday. The court in Manhattan charged him of engaging in a scheme to defraud FTX customers by using billions of dollars in stolen deposits to pay for expenses and debts and to make investments for his crypto hedge fund, Alameda Research LLC.</p>

<p><strong>What does it mean?</strong></p>

<p>Bankman-Fried’s decision to consent to extradition would pave the way for him to appear in U.S. court to face wire fraud, money laundering and campaign finance charges.</p>

<p><strong>Where will Bankman-Fried be kept?</strong></p>

<p>According to defence lawyer Zachary Margulis-Ohnuma, once Bankman-Fried arrives in the United States, he will be kept at the Metropolitan Detention Center in New York’s Brooklyn.&nbsp;</p>

<p>Prosecutors will likely argue that Bankman-Fried is a flight risk and should remain in custody because of the large sums of money involved in the case and the unclear location of those funds.</p>

<p><strong>WATCH -&nbsp;<a href="https://www.wionews.com/videos/the-ftx-bankruptcy-scandal-crypto-exchange-launches-review-of-its-global-assets-535923">The FTX bankruptcy scandal: Crypto exchange launches review of its global assets</a></strong></p>

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<p><br />
"The missing money gives prosecutors strong arguments that he is a flight risk," said former federal prosecutor and white-collar defense attorney Michael Weinstein. "I expect that if a judge grants pretrial release, they would impose very restrictive and onerous conditions."</p>

<p>Bankman-Fried has acknowledged “risk management failings” at FTX but has said he does not believe he has criminal liability.</p>

<p>Bankman-Fried amassed a fortune valued at over $20 billion as he rode a cryptocurrency boom to build FTX into one of the world's largest exchanges. His arrest last Monday in the Bahamas, where he lives and where FTX is based, came just a month after the exchange collapsed amid a flurry of customer withdrawals.<br />
<br />
FTX filed for bankruptcy on Nov. 11, the same day Bankman-Fried stepped down as CEO.&nbsp;</p>

<p>(<em>With inputs from agencies</em>)</p>

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Former FTX Chief Executive Sam Bankman-Fried may no more fight against extradition from Bahamas to the United States. The 30-year-old former cryptocurrency mogul will appear in a Bahamas court on Monday where he is expected to reverse his decision to contest extradition to the United States, where he faces fraud charges on at least a dozen counts, a person familiar with the matter was cited as saying by Reuters.

Former FTX Chief Executive Sam Bankman-Fried may no more fight against extradition from Bahamas to the United States. The 30-year-old former cryptocurrency mogul will appear in a Bahamas court on Monday where he is expected to reverse his decision to contest extradition to the United States, where he faces fraud charges on at least a dozen counts, a person familiar with the matter was cited as saying by Reuters. It was not immediately clear what prompted Bankman-Fried to change his mind and decide not to contest extradition. ALSO READ - How a secret software code change allowed FTX to (mis)use client money Bankman-Fried was indicted in a United States federal court in New York on Tuesday. The court in Manhattan charged him of engaging in a scheme to defraud FTX customers by using billions of dollars in stolen deposits to pay for expenses and debts and to make investments for his crypto hedge fund, Alameda Research LLC. What does it mean? Bankman-Fried’s decision to consent to extradition would pave the way for him to appear in U.S. court to face wire fraud, money laundering and campaign finance charges. Where will Bankman-Fried be kept? According to defence lawyer Zachary Margulis-Ohnuma, once Bankman-Fried arrives in the United States, he will be kept at the Metropolitan Detention Center in New York’s Brooklyn. Prosecutors will likely argue that Bankman-Fried is a flight risk and should remain in custody because of the large sums of money involved in the case and the unclear location of those funds. WATCH - The FTX bankruptcy scandal: Crypto exchange launches review of its global assets × "The missing money gives prosecutors strong arguments that he is a flight risk," said former federal prosecutor and white-collar defense attorney Michael Weinstein. "I expect that if a judge grants pretrial release, they would impose very restrictive and onerous conditions." Bankman-Fried has acknowledged “risk management failings” at FTX but has said he does not believe he has criminal liability. Bankman-Fried amassed a fortune valued at over $20 billion as he rode a cryptocurrency boom to build FTX into one of the world's largest exchanges. His arrest last Monday in the Bahamas, where he lives and where FTX is based, came just a month after the exchange collapsed amid a flurry of customer withdrawals. FTX filed for bankruptcy on Nov. 11, the same day Bankman-Fried stepped down as CEO. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Bahamas to Brooklyn: FTX founder Sam Bankman-Fried to surrender Monday for US extradition