Former FTX CEO Sam Bankman-Fried Faces Home Detention in US on Charges of Financial Fraud

Bankman-fried, the former ceo of ftx, has been charged with defrauding customers and investors of the collapsed cryptocurrency exchange. two of mr bankman-fried’s closest colleagues have also pleaded guilty to fraud and are now assisting with the investigation. federal prosecutors in new york have brought eight criminal charges against mr bankman-fried, as well as civil charges from financial regulators.

Charges against mr bankman-fried were made public on wednesday and he informed the nassau magistrates’ court that he would not fight extradition. on thursday, mr bankman-fried was arraigned in a court hearing in new york, where a us judge ruled that the 30-year-old former billionaire could be released to his parents on a bond of $250 million.

Alleged fraud was carried out with customer deposits made to ftx. prosecutors have described this as “one of the biggest financial frauds in us history”. mr bankman-fried had previously distanced himself from the charges and did not admit or deny guilt at the hearing. he will now be required to surrender his passport, submit to location monitoring, and remain in detention at his parents’ home in california. the collapse of ftx has sent shockwaves through the crypto industry and sparked bankruptcy filings at other firms, leading to further declines in crypto values.

By Evey Lovelace

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