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Cryptocurrencyfraud

All articles tagged with #cryptocurrencyfraud

legalcrime2 years ago

"U.S. Prosecutors Decide Against Second Trial for FTX's Sam Bankman-Fried"

Prosecutors have advised against a second trial for FTX founder Sam Bankman-Fried, who was convicted of fraud in November, arguing that it would be redundant and delay restitution for victims. Bankman-Fried, facing decades in prison, had additional charges dropped due to extradition technicalities, but prosecutors believe these charges would not extend his sentence and have included related evidence in the initial trial. Sentencing is scheduled for March 28.

via Newser|
##cryptocurrencyfraud#ftx
moneywatch2 years ago

"DOJ Opts Out of Second Trial for Sam Bankman-Fried, Prioritizes Sentencing"

Prosecutors have decided not to pursue a second trial against FTX founder Sam Bankman-Fried, who was convicted in November of fraud charges involving at least $10 billion. The decision was made to avoid duplicating evidence and to expedite the resolution of the case, which is in the public interest, especially for the victims awaiting restitution. Bankman-Fried, facing decades in prison, will be sentenced on March 28 without the additional charges that were temporarily dropped due to extradition technicalities. The prosecution believes that a second trial would not affect the potential prison sentence length and emphasizes the need for a timely and just resolution for the victims.

via CBS News|
##cryptocurrencyfraud#ftx
cryptocurrencyfraud2 years ago

Sam Bankman-Fried's Trial: Prosecutors Expose His Own Words

Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, faced intense cross-examination by federal prosecutors in his fraud trial, with his own public statements being used against him. The prosecutor highlighted inconsistencies between Bankman-Fried's public statements and his actions in running FTX before its collapse. Bankman-Fried repeatedly claimed he couldn't remember much of what he had said publicly, including about FTX's handling of customer deposits and conflicts of interest. The cross-examination exposed cracks in Bankman-Fried's claims, potentially damaging his credibility with the jury. Bankman-Fried is facing charges of fraud, conspiracy, and money laundering, and could face a life sentence if convicted.

via The New York Times|
#crypto-industry#cryptocurrencyfraud#fraud-trial
cryptocurrencyfraud2 years ago

Sam Bankman-Fried's Testimony: Admitting Mistakes, Denying Fraud, and Concerns over Management

Sam Bankman-Fried, the founder of FTX, testified in his own defense at his fraud trial, admitting to making "mistakes" but denying allegations of defrauding anyone or stealing billions of dollars from customers. Bankman-Fried blamed the collapse of the cryptocurrency exchange on oversight as an entrepreneur and sought to shift some blame onto Caroline Ellison, the former CEO of his Alameda Research hedge fund. He pleaded not guilty to charges of fraud and conspiracy. Bankman-Fried claimed that funds used for sponsorships and real estate came from the company's revenue or capital, not customer funds. He also distanced himself from the actions of former colleagues who testified against him. Prosecutors will cross-examine Bankman-Fried next week.

via Reuters|
#cryptocurrency-exchange#cryptocurrencyfraud#fraud-trial
cryptocurrencyfraud2 years ago

Unraveling the Deception: The Trial of Sam Bankman-Fried

Former FTX Chief Executive, Sam Bankman-Fried, asked the company's former top lawyer to come up with "legal justifications" for the missing $7 billion in customer funds just days before FTX declared bankruptcy, according to the lawyer's testimony at Bankman-Fried's fraud trial. The lawyer, Can Sun, testified that Bankman-Fried or another executive sent him a spreadsheet indicating the exchange was billions of dollars short and owed billions to Bankman-Fried's hedge fund. Sun's testimony complicates Bankman-Fried's defense that he believed the use of customer funds was appropriate. Bankman-Fried is accused of looting customer funds for investments, political campaigns, and to prop up his hedge fund.

via Reuters|
#cryptocurrencyfraud#customer-withdrawals#fraud-trial
cryptocurrencyfraud2 years ago

"FTX Executive Exposes Sam Bankman-Fried's Misuse of Customer Funds"

Nishad Singh, a former top executive at FTX, testified at Sam Bankman-Fried's fraud trial, accusing the FTX founder of using customer money for extravagant spending on luxury real estate, celebrity endorsements, and political contributions. Singh revealed an $8 billion hole in FTX customer accounts, with much of the missing money allegedly financing Bankman-Fried's lavish lifestyle. Singh, who pleaded guilty to fraud, expressed feeling betrayed and ashamed, and testified about Bankman-Fried's excessive spending and interest in investing in a firm with ties to celebrities. Bankman-Fried, charged with orchestrating a scheme to funnel customer deposits, faces criminal charges.

via The New York Times|
#cryptocurrencyfraud#fraud-trial#ftx
cryptocurrencyfraud2 years ago

Caroline Ellison's Testimony Reveals Explosive Details in SBF Trial

Caroline Ellison, former CEO of Alameda Research and ex-girlfriend of FTX co-founder Sam Bankman-Fried, testified in court about their efforts to deceive lenders and customers in building his cryptocurrency empire. Ellison, who pleaded guilty to multiple charges, including wire fraud and money laundering, is cooperating with the prosecution's case against Bankman-Fried. During cross-examination, she revealed that she and another co-CEO handled Alameda's day-to-day operations, while Bankman-Fried became less involved. Ellison admitted to using FTX customer funds to pay Alameda's loans, allegedly at Bankman-Fried's suggestion. She also mentioned that Bankman-Fried had discussed adding a new co-CEO, but she resisted.

via CNBC|
#alameda-research#caroline-ellison#cryptocurrencyfraud
cryptocurrencyfraud2 years ago

"Caroline Ellison and Sam Bankman-Fried's Decades of Deception Unveiled"

Caroline Ellison, a former top adviser to cryptocurrency mogul Sam Bankman-Fried, testified in court that she had lied and circulated "dishonest" financial documents at his request, misleading lenders and the public about his businesses. Ellison, who dated Bankman-Fried on and off for years, pleaded guilty to fraud and conspiracy and is cooperating with prosecutors. Bankman-Fried is on trial for orchestrating a scheme to defraud lenders and steal billions of dollars from FTX customers. The trial has become a focal point for examining high-risk practices in the crypto industry.

via The New York Times|
#alameda-research#caroline-ellison#cryptocurrencyfraud
cryptocurrencyfraud2 years ago

"FTX Co-founder and Sam Bankman-Fried Face Fraud Trial as AVAX Climbs"

Gary Wang, co-founder of FTX, testified in court that he and Sam Bankman-Fried committed wire fraud, securities fraud, and commodities fraud related to their oversight of the now-bankrupt crypto exchange. Wang's testimony supports the government's case against Bankman-Fried, who is accused of orchestrating a scheme to steal from customers and defraud investors. The trial focuses on FTX's close financial ties to sister company Alameda Research, with prosecutors alleging that FTX deceived customers about the use of their funds. Defense attorneys have yet to cross-examine Wang. Another former FTX employee also testified about a concerning $8 billion liability hanging over Alameda's balance sheet.

via CNN|
#alameda-research#crypto-exchange#cryptocurrencyfraud
cryptocurrencyfraud2 years ago

Sam Bankman-Fried's Trial Unveils Demands, Defense, and Climbing AVAX

Gary Wang, a former colleague and roommate of Sam Bankman-Fried, testified at Bankman-Fried's fraud trial that Bankman-Fried instructed him to give their co-owned hedge fund, Alameda Research, special trading privileges on the FTX cryptocurrency exchange. These privileges included a $65 billion line of credit, significantly larger than what other users could borrow. Alameda had withdrawn $8 billion from FTX, leading to the exchange's bankruptcy. Wang, the former CTO of FTX, stated that Bankman-Fried directed him to implement these changes. Bankman-Fried is facing charges of stealing billions of dollars in FTX customer deposits to cover losses at Alameda, buy real estate, and donate to political candidates.

via Reuters|
#alameda-research#cryptocurrencyfraud#fraud-trial
cryptocurrencyfraud2 years ago

FTX Executive Ryan Salame to Plead Guilty in Fraud Case

Ryan Salame, a former executive at cryptocurrency exchange FTX, is expected to plead guilty to criminal charges related to the fraud case against FTX founder Sam Bankman-Fried. Salame, who ran FTX's subsidiary in the Bahamas and was a donor to Republican politicians, will become the fourth executive in Bankman-Fried's inner circle to admit to criminal conduct since FTX collapsed in November. This development increases the legal pressure on Bankman-Fried, who is set to stand trial on fraud charges starting October 3rd.

via The New York Times|
#cryptocurrencyfraud#fraud-case#ftx