by Rekt Tech partner Robert Mowry reacted to FTX’s new CEO telling lawmakers on Capitol Hill that the stock market is unlikely to recover all its losses.
FTX founder Sam Bankman-Fried and Alameda Research CEO Caroline Ellison have hired high-powered criminal defense attorneys specializing in white-collar crimes amid ongoing law enforcement investigations into the collapse of crypto empires.
Bankman-Fried was arrested in the Bahamas on Monday at the request of US authorities before his possible extradition at a later date. A federal prosecutor on Tuesday filed an indictment revealing that Bankman-Fried was charged with eight counts.
Charges against him include electronic fraud against customers and a related conspiracy charge; radio fraud and a conspiracy charge against lenders; in addition to conspiracy to violate commodity fraud, securities fraud, money laundering and campaign finance laws.
SAM BANKMAN-FRIED’S BREAKFAST REJECTION IN THE BAHAMAS, ORDERED TO BE MADE TILL FEB 22 8 FTX ALLEGED FRAUD
Samuel Bankman-Fried left the Magistrates’ Court, Nassau Bahamas on December 13, 2022. Samuel Bankman-Fried left the Magistrates’ Court, Nassau Bahamas on December 13, 2022. (Mega for Fox News Digital / Fox News)
In total, the charges Bankman-Fried faces carry a potential prison sentence of up to 115 years in total, based on federal sentencing guidelines for these crimes. The number of electronic fraud charges and money laundering conspiracy, including conspiracy charges, each carries a maximum sentence of 20 years in prison. Each of the commodity and securities fraud charges and the campaign finance conspiracy charge carries a maximum prison sentence of five years.
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It’s up to Mark Cohen of the Cohen & Gresser law firm to prevent Bankman-Fried from spending the rest of his life in prison if convicted of the crimes he’s accused of.
A former federal prosecutor, Cohen has represented a variety of clients, including financial firms, hedge funds, executives, energy companies, and others facing federal charges. Cohen represented Jeffrey Epstein’s confidant Ghislaine Maxwell in the sex trafficking case and was the defense attorney for Joaquin “El Chapo” Guzman, the leader of the Sinaloa drug cartel.
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Sam Bankman-Fried, co-founder and former CEO of FTX, Hong Kong, China. A judge in the Bahamas has ordered that Bankman-Fried remain in detention until February 8, despite federal charges against him in the United States. (Photographer: Getty Images / via Getty Images Lam Yik/Bloomberg)
US Attorney General for the Southern District of New York, Damian Williams, said at a press conference Tuesday announcing the charges against Bankman-Fried, that the Bankman-Fried case, which has been compared to Bernie Madoff’s Ponzi scheme and the Enron scandal, will go down. “One of the biggest scams in American history.”
Williams also gave an ominous warning to Bankman-Fried’s conspirators who could face charges, saying, “As to whether we’re going to press charges against anyone else, I can only say this: Frankly, we’re not done.”
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FTX Group CEO John J. Ray III is set to testify at the House Financial Services Committee hearing on Tuesday, December 13, 2022, entitled Investigating FTX’s Collapse, Part I. Ray took over after Sam Bankman-Fried’s resignation. . (Tom Williams/CQ-Roll Call, Inc. via Getty Images / Getty Images)
As of Tuesday, no charges have been brought against his ex-girlfriend, Caroline Ellison, who Bankman-Fried has reportedly appointed to lead the Alameda Research.
However, Ellison retained the services of Stephanie Avakian, a partner at the WilmerHale law firm. Avakian has deep experience in legal matters related to the financial industry as he was previously the director of the Securities and Exchange Commission’s Enforcement Division.
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Currently, Avakian leads WilmerHale’s Securities and Financial Services Department and has worked to advise and defend public companies, corporate boards, investment banks, and individual executives involved in government investigations.
Fox Business’ Charles Gasparino noted on twitter Ellison’s selection of an attorney from WilmerHale sparked speculation that he would “cooperate” with prosecutors and turn Bankman-Fried on, given the company’s ties to the federal attorney’s office in Manhattan and its reputation for securing plea bargains.
