Bankman-Fried is accused of illegally utilizing FTX buyer deposits to help his Alameda Research hedge fund, purchase actual property and make hundreds of thousands of {dollars} in political contributions.
He is scheduled to seem at 2 p.m. EST (1900 GMT) on Tuesday earlier than US District Judge Lewis Kaplan in Manhattan to enter a plea.
A lawyer for Bankman-Fried didn’t instantly reply to a request for remark.
It is just not uncommon for legal defendants to initially plead not responsible. Defendants are free to vary their plea at a later date.
Bankman-Fried has been free on $250 million bond following his extradition final month from the Bahamas, the place he lived and the place the trade was based mostly.
Discover the tales of your curiosity
Since his launch, Bankman-Fried has been topic to digital monitoring and required to reside along with his mother and father, each professors at Stanford Law School in California.
The Massachusetts Institute of Technology graduate has been charged with two counts of wire fraud and 6 conspiracy counts, together with to launder cash and commit marketing campaign finance violations. He might resist 115 years in jail if convicted.
Bankman-Fried has admitted to creating errors working FTX however stated he didn’t imagine he was criminally liable.
The 30-year-old crypto mogul rode a increase within the worth of bitcoin and different digital property to develop into a billionaire a number of occasions over and an influential political donor within the United States, till FTX collapsed in early November after a wave of withdrawals. The trade declared chapter on Nov. 11.
The prosecution case was strengthened by final month’s responsible pleas of two of Bankman-Fried’s closest associates.
Caroline Ellison, who was Alameda’s chief govt, and Gary Wang, FTX’s former chief know-how officer, pleaded responsible to seven and 4 legal fees, respectively, and agreed to cooperate with prosecutors.
Ellison instructed prosecutors she agreed with Bankman-Fried to cover from FTX’s buyers, lenders and clients that the hedge fund might borrow limitless sums from the trade, in accordance a transcript of her December 19 plea listening to.