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FTX Founder Set to Face Trial After Bankruptcy and Accusations of Lavish Spending

EditorVenkatesh Jartarkar
Published 09/28/2023, 11:01 AM
© Reuters
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In a series of events leading to the upcoming trial of Sam Bankman-Fried, founder of cryptocurrency exchange FTX, the company filed for bankruptcy following accusations of misleading statements by the Federal Deposit Insurance Corporation (FDIC) and links to Alameda. The charges, which include wire fraud, stem from allegations of excessive executive spending. The trial is set to begin on October 3, 2023.

In the year leading up to this development, Bankman-Fried had engaged in several high-level discussions concerning cryptocurrencies with key figures in the financial world. These meetings were arranged by FTX policy official Mark Wetjen.

Bankman-Fried met with Federal Reserve Chair Jerome Powell in 2022 for discussions revolving around cryptocurrencies. He also held meetings with top Fed official Lael Brainard and FDIC Acting Chairman Martin Gruenberg. Records from Powell's calendar also showed meetings with CEOs like David Solomon from Goldman Sachs and Jamie Dimon from JPMorgan Chase (NYSE:JPM).

These interactions with influential figures in the financial sector highlight the growing intersection between traditional finance and the emerging world of cryptocurrencies. However, they couldn't prevent the ensuing legal troubles for FTX and its founder Bankman-Fried, whose trial is slated to commence in less than a week.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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