Sam Bankman-Fried, the CEO of FTX cryptocurrency trading platform and the founder of Alameda Research, is slated to testify in federal trial in New York later this month, according to an attorney involved in the case.
Bankman-Fried is expected to be part of the prosecution’s case against four alleged fraudsters accused of running a $25 million scam in the cryptocurrency market. The defendants are alleged to have falsely claimed that they had secured $20 million from high-profile investors in order to manipulate the market.
A spokesperson for Bankman-Fried declined to comment on the matter, citing the ongoing legal proceedings.
The four defendants ― Vitaly Korchevsky, Vladislav Smolingu, Anthony Tyler Stark and Arkadiy Dubovoy ― are charged with wire fraud conspiracy, commodities fraud conspiracy, money laundering conspiracy and securities fraud conspiracy. They are also accused of using the proceeds of the fraud to purchase property and luxury items, including cars and jewels.
Bankman-Fried’s testimony is expected to focus on the details of Alameda Research’s business activities. Alameda acts as a market maker for cryptocurrency assets, providing liquidity to the market.
