It was the second Manhattan court appearance for Bankman-Fried, 30, who was extradited from the Bahamas last month and is facing a $250 million house arrest order. dollars for nearly two weeks. Bankman-Fried wears an ankle monitor and must stay at her parents’ home in Palo Alto, Calif., except for court appearances and exercise sessions.
He arrived at the courthouse more than an hour before his case was called, surrounded by a group of photographers as he got out of a black SUV.
During the proceedings, U.S. District Court Judge Lewis A. Kaplan, who is currently overseeing the case, granted anonymity to two parties who should join Bankman-Fried’s parents in endorsing his bond. Bankman-Fried had previously been ordered to have two more guarantors for his bond by Jan. 1. 5, including at least one unrelated.
Typically, bond sureties are identified in court and their names are in the public domain. On Tuesday morning, Bankman-Fried’s attorneys submitted a letter to Kaplan requesting the anonymity of the two remaining guarantors, citing security concerns and noting that Bankman-Fried’s parents, who are both professors at Stanford Law School, received alarming communications.
“In recent weeks, Mr. Bankman-Fried’s parents have become the target of intense media scrutiny, harassment and threats,” the letter reads. “Among other things, Mr. Bankman-Fried’s parents have received a steady stream of threatening correspondence, including communications expressing a desire that they suffer physical harm.
Prosecutors did not object to the defense attorneys’ request, but Kaplan said he would reconsider the decision to anonymize if third parties such as the media file a request.
The registration of a plea is mandatory at the start of a case. The 30-year-old could change his plea as the case progresses, either on his own or as part of a negotiated deal with prosecutors.
Kaplan has scheduled the Bankman-Fried trial for October 10. 2 but noted that the start date might change minimally before then.
Two from Bankman-Fried close The partners have already reached agreements with the US Attorney’s office in Manhattan. In addition to pleading guilty to charges similar to those against Bankman-Fried, former Alameda Research CEO Caroline Ellison and former FTX CTO Gary Wang have agreed to cooperate with the department. of Justice.
Ellison and Wang may be key in helping prosecutors unpack what they described as an illicit mix of finances by crypto trading platform FTX and Alameda, which was Bankman-Fried’s hedge fund. During Tuesday’s arraignment, Assistant U.S. Attorney Danielle Sassoon described “a unique and hidden relationship” between FTX and Alameda.
“From the outset, customer deposits were deposited into bank accounts controlled by Alameda, and from the earliest days of the exchange, Alameda used customer money for Alameda operational expenses,” Sassoon added.
Prosecutors say the alleged scheme cost FTX customers billions of dollars as the company collapsed. There were so many alleged victims involved – at least 1 million – that the US Attorney’s office is seeking permission to send the required victim notifications via a website, rather than individually as is usually done.
Kaplan also granted a request by Sassoon to bar Bankman-Fried from “accessing or transferring” FTX and Alameda assets following Dec. 21. 28 reporting that “some Alameda wallets were accessed and money was transferred”. Bankman-Fried has denied any involvement in those transactions, and Sassoon said the US government is still investigating what happened.
Prosecutors said Bankman-Fried’s personal wealth took a huge hit as his empire crumbled around him. FTX was the third-largest crypto exchange in the world, and its brand benefited from ads featuring powerhouse celebrities, including athletes such as Tom Brady and Stephen Curry.
The collapse of FTX in early November marked a major shift in the cryptocurrency landscape, shaking customer and investor confidence in other major exchanges. Bankman-Fried, who is charged with wire fraud, conspiracy and related charges, faces a significant prison sentence if convicted in what prosecutors called a “very strong” case. He faces up to 115 years in prison.
Bankman-Fried did several interviews in the weeks before his arrest, saying he was unaware the funds had been embezzled. He was arrested in the Bahamas, where he lived and reportedly partied with other FTX and Alameda executives, the day before he testified before Congress about the collapse of his crypto exchange.
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