FTX founder Sam Bankman-Fried presided over the largest crypto collapse in history. Now he is about to start fighting to stay out of prison for the rest of his life.
The legal standoff that begins Tuesday inside a New York City courtroom is expected to expose the murky details of FTX’s 2022 collapse, a sudden unraveling that rattled the financial world and punctured the confidence of investors who had bet big on digital assets.Federal prosecutors, Auerbach said, will argue that Bankman-Fried committed straightforward fraud by lying to customers, investors, and government agencies.
The report spurred a run on customer deposits. Over a five-day period, FTX lost 87% of its assets on deposit as customers asked to cash out of their positions. That pushed the exchange into bankruptcy. In its petition for Chapter 11 protection, the company reported aand filed for bankruptcy two weeks later. Crypto banking firm Silvergate, which suffered $8 billion in customer withdrawals in the wake of FTX’s filing, announced in March that it would liquidate.
Kaplan did so because he agreed with a claim made by prosecutors that Bankman-Fried had engaged in witness tampering by leakingProsecutors cited other conversations Bankman-Fried had with journalists before the trial, including Michael Lewis, who wrote a book about Bankman-Fried titled "Bankman-Fried has complained since entering prison of subsisting on bread and water in the crowded facility that reportedly denied his request for vegetarian meals.
"She continually avoided talking about risk management — dodging my suggestions — until it was too late," Bankman-Fried wrote, according to The New York Times. He went on to say that at the time of running FTX he did what he thought was "right." NEW YORK — A New York judge sentenced a woman who pleaded guilty to fatally shoving an 87-year-old Broadway singing coach onto a Manhattan sidewalk to six months more in prison than the eight years that had been previously reached in a plea deal.
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