FTX founder Sam Bankman-Fried's mom Barbara attends his first NYC court appearance in criminal fraud case
MANHATTAN, NEW YORK: Disgraced crypto king Sam Bankman-Fried's mother arrived at the Manhattan Federal Court on Thursday, December 22, 2022. Hours after her son arrived in the US from FBI custody in the Bahamas, Barbara Fried reached the court for his hearing in alleged fraud and money laundering case. Sam's ex-girlfriend Caroline Ellison has been sentenced to 110 years in prison.
Barbara, a law professor at Stanford, arrived at the federal court as her son faced federal fraud charges for defrauding his investors in his FTX cryptocurrency exchange of $1.8 billion and misusing his firm's funds, according to the New York Post.
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Alameda Research, the sister trading house of FTX went bankrupt in November that dissolved the $32 billion worth of virtual trading business. Ellison, the former CEO of Alameda Research, admitted to committing securities fraud, wire fraud, and commodities fraud with money laundering as an added charge, reports the Daily Mail. In a leniency deal struck with Sothern District of New York's federal prosecutors on December 18, Ellison could be sentenced to 110 years in jail.
Fried, the now-bankrupt cryptocurrency exchange founder, was extradited to the US on December 22 following Ellison's and co-founder Gary Wangs' guilty pleas to the crimes committed in a plea agreement. On Wednesday, Manhattan US Attorney Damian Williams stated that after the FTX founder arrives in the US, he would be "transported directly to the Southern District of New York," and would face a federal judge "as soon as possible."
"If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it. We are moving quickly and our patience is not eternal," Williams warned crypto fraudsters to make a move forward while plea arrangements are still ongoing. He added, "I also said that last week's announcement would not be our last, and let me be clear once again, neither is today's."
On Thursday, December 22, Sam, who appeared at the Manhattan Federal Court after returning from the Bahamas where he was arrested last week, will reportedly be released following a $250 million bond, according to a plea deal struck at the hearing, as per the report.