<p>Once hailed as America’s crypto king, FTX’s Sam Bankman-Fried on Tuesday (Oct 3) will stand trial for allegedly masterminding one of the biggest financial frauds in the history of the country.</p>

<p>A federal court in Manhattan, New York will start hearing the case against the disgraced founder of the bankrupt crypto exchange. The 31-year-old techie faces two separate criminal trials.&nbsp;</p>

<p>In the first trial, he faces seven criminal counts related to the collapse of his $32 billion empire. Allegations against him include wire fraud, securities fraud, money laundering and using customers’ money for personal purchases.</p>

<h2><strong>Charges against Sam Bankman-Fried?</strong></h2>

<ol>
	<li>Conspiracy to commit wire fraud on customers of FTX.</li>
	<li>Wire fraud on customers of FTX.</li>
	<li>Conspiracy to commit wire fraud on lenders to Alameda Research.</li>
	<li>Wire fraud on lenders to Alameda Research.</li>
	<li>Conspiracy to commit fraud on customers of FTX in connection with the purchase and sale of derivatives.</li>
	<li>Conspiracy to commit securities fraud on investors in FTX.</li>
	<li>Conspiracy to commit money laundering.</li>
</ol>

<p>If convicted in all cases, Sam Bankman-Fried could face more than 100 years in prison. As of now, he has pleaded not guilty to all these charges.</p>

<h2><strong>The trial to last for six weeks</strong></h2>

<p>As per media reports, his trial will last for six weeks. Following the trial, the prosecution will take almost a month to lay the foundation for its case against Bankman.&nbsp;</p>

<p><strong>Watch:&nbsp;FTX founder Sam Bankman-Fried is 'ready to face music?'</strong></p>

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<p>Bankman-Fried has been incarcerated in a Brooklyn, New York jail since August 2022, following the revocation of his multimillion-dollar bail due to witness tampering allegations.&nbsp;</p>

<p>These accusations stem from his alleged leaking of Ellison's private diary entries to The New York Times, as Ellison is anticipated to be a crucial witness for the prosecution.</p>

<p><a href="https://www.wionews.com/science-tech/explained-the-other-sam-how-sam-altman-founder-of-chatgpt-worldcoin-is-next-wunderkind-of-tech-594170"><strong>Also read:&nbsp;Explained: The Other Sam—How Sam Altman, founder of ChatGPT, WorldCoin is the next tech wunderkind</strong></a></p>

<p>The current court records suggest that Bankman-Fried's legal team might employ an "advice of counsel" defence. This defence strategy would assert that he acted in accordance with guidance from FTX lawyers and was unaware that his actions constituted illegal behaviour.</p>

<h2><strong>Downfall of Sam Bankman-Fried</strong></h2>

<p>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.</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>

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Once hailed as America’s crypto king, FTX’s Sam Bankman-Fried on Tuesday (Oct 3) will stand trial for allegedly masterminding one of the biggest financial frauds in the history of the country.

Once hailed as America’s crypto king, FTX’s Sam Bankman-Fried on Tuesday (Oct 3) will stand trial for allegedly masterminding one of the biggest financial frauds in the history of the country. A federal court in Manhattan, New York will start hearing the case against the disgraced founder of the bankrupt crypto exchange. The 31-year-old techie faces two separate criminal trials. In the first trial, he faces seven criminal counts related to the collapse of his $32 billion empire. Allegations against him include wire fraud, securities fraud, money laundering and using customers’ money for personal purchases. Charges against Sam Bankman-Fried? Conspiracy to commit wire fraud on customers of FTX. Wire fraud on customers of FTX. Conspiracy to commit wire fraud on lenders to Alameda Research. Wire fraud on lenders to Alameda Research. Conspiracy to commit fraud on customers of FTX in connection with the purchase and sale of derivatives. Conspiracy to commit securities fraud on investors in FTX. Conspiracy to commit money laundering. If convicted in all cases, Sam Bankman-Fried could face more than 100 years in prison. As of now, he has pleaded not guilty to all these charges. The trial to last for six weeks As per media reports, his trial will last for six weeks. Following the trial, the prosecution will take almost a month to lay the foundation for its case against Bankman. Watch: FTX founder Sam Bankman-Fried is 'ready to face music?' × Bankman-Fried has been incarcerated in a Brooklyn, New York jail since August 2022, following the revocation of his multimillion-dollar bail due to witness tampering allegations. These accusations stem from his alleged leaking of Ellison's private diary entries to The New York Times, as Ellison is anticipated to be a crucial witness for the prosecution. Also read: Explained: The Other Sam—How Sam Altman, founder of ChatGPT, WorldCoin is the next tech wunderkind The current court records suggest that Bankman-Fried's legal team might employ an "advice of counsel" defence. This defence strategy would assert that he acted in accordance with guidance from FTX lawyers and was unaware that his actions constituted illegal behaviour. Downfall of Sam Bankman-Fried 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. WATCH WION LIVE HERE ×

US: Disgraced FTX founder Sam Bankman-Fried goes on trial Tuesday

<p>Sam Bankman-Fried, the founder of the FTX cryptocurrency exchange, has been charged with using stolen customer funds to amass a sum exceeding $100 million in campaign contributions leading up to the 2022 US midterm elections.&nbsp;</p>

<p>The bombshell was dropped on Monday with the filing of a new indictment against Bankman-Fried.</p>

<h2><strong>New indictment</strong></h2>

<p>The new indictment, as per The Guardian, brings forth serious charges against the once-renowned 31-year-old billionaire. The FTX founder now faces seven counts of conspiracy and fraud linked to the collapse of the FTX exchange. Previously, Bankman-Fried had already entered a not-guilty plea.</p>

<p><strong>Also read |&nbsp;<a href="https://www.wionews.com/business-economy/former-ftx-ceo-sam-bankman-frieds-bail-plea-rejected-ordered-to-jail-624714">Former FTX CEO Sam Bankman-Fried’s bail revoked for witness tampering, heads to prison</a></strong></p>

<p>At the core of this high-stakes legal drama is the allegation that Bankman-Fried misappropriated customer funds, diverting them towards a colossal $100 million fund aimed at influencing the 2022 US midterm elections.&nbsp;</p>

<h2><strong>The new charges</strong>&nbsp;</h2>

<p>The charges outlined in the indictment allege that Bankman-Fried concealed the fact that FTX customer deposits were a source of election donations.&nbsp;</p>

<p>It claims that he deliberately obscured the origin of the donations by arranging for funds from FTX's affiliated trading company, Alameda, which were then transferred to personal bank accounts held by FTX executives. They then subsequently made donations under their own names, which enabled them to sidestep regulations regarding specific categories of political contributions.&nbsp;</p>

<p><strong>Also read |&nbsp;<a href="https://www.wionews.com/world/embattled-bankman-fried-might-be-heading-to-prison-before-trial-know-why-619817">Embattled Bankman-Fried might be heading to prison before trial. Know why</a></strong></p>

<p>Allegedly, this strategy aimed to amplify the cryptocurrency firm FTX's impact within the political sphere.</p>

<p>It says that Bankman-Fried "leveraged this influence, in turn, to lobby Congress and regulatory agencies to support legislation and regulation he believed would make it easier for FTX to continue to accept customer deposits and grow, which would, in turn, allow the misappropriation scheme to continue. Bankman-Fried also used these connections with politicians and government officials to falsely burnish the public image of FTX as a legitimate exchange."</p>

<p>Initially, the US attorney's office in Manhattan had charged Bankman-Fried with violating US campaign finance laws. However, the charge was dropped in late July.</p>

<p><em>(With inputs from agencies)</em></p>

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Sam Bankman-Fried, the founder of the FTX cryptocurrency exchange, has been charged with using stolen customer funds to amass a sum exceeding $100 million in campaign contributions leading up to the 2022 US midterm elections.

Sam Bankman-Fried, the founder of the FTX cryptocurrency exchange, has been charged with using stolen customer funds to amass a sum exceeding $100 million in campaign contributions leading up to the 2022 US midterm elections. The bombshell was dropped on Monday with the filing of a new indictment against Bankman-Fried. New indictment The new indictment, as per The Guardian, brings forth serious charges against the once-renowned 31-year-old billionaire. The FTX founder now faces seven counts of conspiracy and fraud linked to the collapse of the FTX exchange. Previously, Bankman-Fried had already entered a not-guilty plea. Also read | Former FTX CEO Sam Bankman-Fried’s bail revoked for witness tampering, heads to prison At the core of this high-stakes legal drama is the allegation that Bankman-Fried misappropriated customer funds, diverting them towards a colossal $100 million fund aimed at influencing the 2022 US midterm elections. The new charges The charges outlined in the indictment allege that Bankman-Fried concealed the fact that FTX customer deposits were a source of election donations. It claims that he deliberately obscured the origin of the donations by arranging for funds from FTX's affiliated trading company, Alameda, which were then transferred to personal bank accounts held by FTX executives. They then subsequently made donations under their own names, which enabled them to sidestep regulations regarding specific categories of political contributions. Also read | Embattled Bankman-Fried might be heading to prison before trial. Know why Allegedly, this strategy aimed to amplify the cryptocurrency firm FTX's impact within the political sphere. It says that Bankman-Fried "leveraged this influence, in turn, to lobby Congress and regulatory agencies to support legislation and regulation he believed would make it easier for FTX to continue to accept customer deposits and grow, which would, in turn, allow the misappropriation scheme to continue. Bankman-Fried also used these connections with politicians and government officials to falsely burnish the public image of FTX as a legitimate exchange." Initially, the US attorney's office in Manhattan had charged Bankman-Fried with violating US campaign finance laws. However, the charge was dropped in late July. (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 indicted with seven charges for using stolen funds in campaign contributions

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US: Disgraced FTX founder Sam Bankman-Fried goes on trial Tuesday

Sam Bankman-Fried indicted with seven charges for using stolen funds in campaign contributions