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Sam Bankman-Fried, founder of FTX, is allegedly going to enter a not guilty plea to fraud charges stemming from the exchange’s failure last year.
In response to the criminal claims that he misled investors and stole billions of dollars from the exchange, Bankman-Fried will plead not guilty, according to Reuters.
The former crypto millionaire is charged with utilizing FTX client cash improperly to support his trading firm Alameda Research, make political contributions, and finance extremely risky bets.
To submit the plea, Bankman-Fried will appear in court before U.S. District Judge Lewis Kaplan in Manhattan on Tuesday, January 3.
When he got arrested, Bankman-Fried was in California under GPS-monitored house arrest, which was supported by a $250 million bail that was signed by his parents, two unnamed people who had substantial assets, and the equity in their home.
Former Alameda Research CEO Caroline Ellison has admitted her guilt and volunteered to cooperate with the inquiry. Ellison admitted that FTX had financed loans to Alameda using money from its customers.
According to the Reuters report, Bankman-Fried can expect to be sentenced to 115 years in jail if found guilty of all counts.