FTX founder Bankman-Fried to plead not guilty to new charges

NEW YORK - Indicted FTX founder Sam Bankman-Fried is expected to plead not guilty Thursday to new U.S. criminal charges, including conspiring to violate campaign finance laws and bribe Chinese authorities.

Bankman- Fried, 31, had pleaded not guilty to eight counts of fraud and conspiracy for allegedly stealing billions of FTX customer funds to plug losses at his hedge fund, Alameda Research. A person familiar with the matter told Reuters he plans to plead not guilty to the new 13 count indictment.

The new charges add to the pressure on Bankman-Fried, who faces a possible sentence of decades in prison if convicted at a trial set to start on October 2.

In December he was arrested after a flurry of customer withdrawals spurred by concerns about the commingling of funds between the exchange and Alameda caused the collapse of the now-bankrupt FTX.

The initial indictment by the U.S. Attorney's office in Manhattan contained few details about the alleged scheme. In an unusual post-arrest blog post, the former billionaire acknowledged inadequate risk management at FTX, but said he did not steal funds.

In late February, Prosecutors filed a new 12 count indictment elaborating on the fraud charges and accusing Bankman-Fried of illegally contributing tens of millions of dollars to U.S. political campaigns through straw donors, part of a strategy to buy influence in Washington.

Three former members of Bankman- Fried's inner circle - former Alameda CEO Caroline Ellison, former FTX technology chief Zixao Gary Wang and former FTX engineering director Nishad Singh - have all pleaded guilty and agreed to cooperate with prosecutors.

Bankman-Fried is confined to his parents' Palo Alto, California, home on a $250 million bond pending trial. Earlier this week, U.S. District Judge Lewis Kaplan approved modifications to Bankman- Fried's bail package that was designed to prevent the defendant from tampering with witnesses.