Sam Bankman-Fried is expected to plead not guilty to defrauding FTX investors, reports say
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- Sam Bankman-Fried is likely to plead not guilty, per The Wall Street Journal and Reuters.
- He faces multiple criminal charges including wire fraud and conspiracy to commit money laundering.
- Bankman-Fried's former associate Caroline Ellison has pleaded guilty to similar charges.
Sam Bankman-Fried is likely to plead not guilty to charges that he defrauded investors and looted billions of dollars from collapsed cryptocurrency exchange FTX, sources told the The Wall Street Journal and Reuters.
The former CEO is due to appear in court in New York City on Tuesday afternoon to enter a plea.
He's facing multiple criminal charges including wire fraud, conspiracy to commit money laundering, and conspiracy to violate campaign financing laws.
If convicted, Bankman-Fried could face up to 115 years in prison, per Reuters.
Prosecutors allege that he "orchestrated a years-long fraud" to conceal diversion of funds from FTX to Alameda Research, a hedge fund he also controlled. He also used these funds to buy real estate and make political donations worth tens of millions of dollars.
They also allege that Bankman-Fried's criminal conduct contributed to the cryptocurrency exchange's collapse in November, which left many investors unable to access their funds.
He's admitted to making mistakes at FTX, but maintains that he doesn't consider himself to be criminally liable.
Sam Bankman-Fried was arrested on December 12 in the Bahamas at the request of the US government. His indictment was unsealed the next day and he was extradited to New York.
He was later released on a $250 million bond. He's been required to surrender his passport and stay at his parents home in California, wearing an ankle monitor, in advance of his court appearance.
It is not unusual for criminal defendants to initially plead not guilty and defendants can later change their plea, Reuters reported.
However, a not guilty plea would put him at odds with his former associates.
Former Alameda Research CEO Caroline Ellison and FTX cofounder Gary Wang both pleaded guilty to criminal charges similar to those Bankman-Fried faces. They are cooperating with prosecutors.
A spokesperson for Bankman-Fried did not immediately respond to Insider's request for comment, sent outside of normal working hours