Days after his former colleagues pleaded guilty to federal criminal charges, FTX founder Sam Bankman-Fried was arraigned in a Manhattan courtroom Thursday. A judge released him on $250 million bail, allowing him to remain at his parents' home as he awaits trial.
Bankman-Fried is accused of defrauding investors. According to the Securities and Exchange Commission, he took money from FTX investors and poured it into his hedge fund, Alameda Research. The SEC alleges Alameda would then use those investor funds to make venture capital investments, lavish real estate purchases and political donations.
FTX Founder Agrees To Extradition To U.S., Attorney Says
Sam Bankman-Fried's defense attorney says he agreed to extradition because he wants to make right by FTX customers.
Earlier this week, Damian Williams, U.S. attorney for the southern district of New York, announced two executives connected to FTX pleaded guilty and are cooperating.
"The southern district of New York has filed charges against Caroline Ellison, the former CEO of Alameda Research, and Gary Wang, a co-founder of FTX, in connection to their roles in the frauds that contributed to FTX's collapse," Williams said. "Both Ms. Ellison and Mr. Wong have pled guilty to those charges, and they are both cooperating with the southern district of New York."
Ellison and Wang are known as two of Bankman-Fried's closest advisers.
The SEC said in a statement that both "were active participants in the scheme to deceive FTX's investors and engaged in conduct that was critical to its success."
In his video statement, Williams made it clear the investigation is still underway.
If Bankman-Fried is convicted, he faces a maximum of 115 years in prison.
