Sam Bankman-Fried Just Pleaded Not Guilty in FTX Fraud Case

Believe it or not, Sam Bankman0Fried just pleaded not guilty in the FTX case. Check out the latest reports below.

It’s been just revealed that the former CEO Sam Bankman-Fried officially pleads not guilty in the FTX fraud case. The Tuesday hearing has seen the disgraced founders’ official plea to criminal charges by United States prosecutors of fraud and conspiracy,

Watcher Guru noted that Bankman-Fried is accused of utilizing customer assets from his now-bankrupt crypto exchange platform to fund bets through hedge fund Alameda Research.

Moreover, his not-guilty plea differs from the action taken by Alameda CEO Caroline Ellison, and fellow FTX founder Gary Wang. We suggest that you check out the complete article in order to learn all the available info.

Caroline Ellison, the former CEO of Alameda Research, says the trading firm made short-term and open-term loans worth billions of dollars. This move has been made in order to pay for its venture investments.

In a transcript of her guilty plea shared by Inner City Press on Twitter, Ellison says she agreed with others to pay for the loans by borrowing from sister company FTX.

“While I was co-CEO and then CEO, I understood that Alameda had made numerous large illiquid venture investments and had lent money to Mr. Bankman-Fried and other FTX executives.”

She continued and said the following:

“In and around June 2022, I agreed with others to borrow several billion dollars from FTX to repay those loans.”

She said she was aware that FTX would use customer funds to lend money to Alameda.

“I understood that FTX would need to use customer funds to finance its loans to Alameda…Most FTX customers did not expect that FTX would lend their digital asset holdings and fiat currency deposits to Alameda in this fashion.”