Feds launch FTX task force to recover victim assets, continue probes as Bankman-Fried pleads not guilty

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Sam Bankman-Fried trial set to start October 2nd

The Manhattan U.S. Attorney’s Office said Tuesday it had created an FTX Task Force to trace and recover assets of victims of the cryptocurrency exchange firm’s collapse and to handle investigations and prosecutions related to the company and other entities.

The announcement came as FTX founder and former CEO Sam Bankman-Fried appeared in U.S. District Court in Manhattan to plead not guilty in his criminal case, where he is charged with multiple counts of financial fraud and campaign finance crimes.

“The Southern District of New York is working around the clock to respond to the implosion of FTX,” Manhattan U.S. Attorney Damian Williams said in a statement.

“It is an all-hands-on-deck moment,” Williams added.

“We are launching the SDNY FTX Task Force to ensure that this urgent work continues, powered by all of SDNY’s resources and expertise, until justice is done,” he said.

Williams’ top deputy, Andrea Griswold, is leading the task force, which will draw prosecutors from the Securities and Commodities Fraud, Public Corruption, and Money Laundering and Transnational Criminal Enterprises units.

Former FTX chief executive Sam Bankman-Fried (C) arrives to enter a plea before US District Judge Lewis Kaplan in the Manhattan federal court, New York, January 3, 2023. 
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The Securities and Exchange Commission has estimated that customers lost more than $8 billion as a result of fraud at FTX and Bankman-Fried’s hedge fund, Alameda Research.

When FTX filed for Chapter 11 bankruptcy protection in November, it claimed to have more than 100,000 creditors, and liabilities of between $10 billion and $50 billion, compared with assets in an identical range.

The 30-year-old Bankman-Fried is free but under house arrest at his parents’ residence, on a $250 million personal recognizance bond, which was set after he was extradited from the Bahamas late last month.

Two of his lieutenants pleaded guilty in Manhattan federal court to multiple counts of fraud before he was extradited: Caroline Ellison, the 28-year-old former CEO of Alameda, and FTX co-founder Gary Wang, 29.

Both Ellison and Wang are cooperating in the investigation of Bankman-Fried and related FTX matters.

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US Man Sentenced for Conspiring to Steal GE Secrets for China

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A New York man was sentenced on Tuesday to two years in prison for conspiring to steal General Electric Co.’s trade secrets to benefit China, the U.S. Justice Department said.

Xiaoqing Zheng, 59, of Niskayuna, New York, was convicted of conspiracy to commit economic espionage following a four-week jury trial that ended in March last year, according to the Justice Department. U.S. District Judge Mae D’Agostino also sentenced Zheng to pay a $7,500 fine and serve one year of post-imprisonment supervised release.

U.S. officials have said the Chinese government poses the biggest long-term threat to U.S. economic and national security, and is carrying out unprecedented efforts to steal critical technology from U.S. businesses and researchers. China denies the allegations.

Zheng was employed at GE Power in Schenectady, New York, as an engineer specializing in turbine sealing technology. He worked at GE from 2008 until the summer of 2018, the Justice Department said.

The trial evidence showed Zheng and others in China conspired to steal GE’s trade secrets surrounding its ground-based and aviation-based turbine technologies to benefit China, including China-based companies and universities that research and manufacture parts for turbines, the Justice Department added.

“This is a case of textbook economic espionage. Zheng exploited his position of trust, betrayed his employer and conspired with the government of China to steal innovative American technology,” said Assistant Attorney General Matthew Olsen of the Justice Department’s national security division.

The United States had accused the former GE engineer and another Chinese businessman named Zhaoxi Zhang in 2019 of stealing secrets and spying on GE to aid China. Zheng had pleaded not guilty at the time.

A U.S. federal court in Cincinnati sentenced a Chinese national in November to 20 years in prison after he was convicted of plotting to steal trade secrets from several U.S. aviation and aerospace companies.

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Major New Jersey paper calls Second Amendment a ‘curse,’ claims America has ‘fetish with gun culture’

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The editorial board of a major New Jersey newspaper recently claimed that the Second Amendment “is a curse.”

The Star-Ledger published an editorial on Tuesday, titled “The Second Amendment is a curse,” which railed against Americans’ gun rights, claiming they’re making it difficult for state lawmakers to enact gun safety measures, like gun free zones. 

The piece argued that while the Supreme Court and pro-Second Amendment lawsuits make it harder to New Jersey to pass gun control, “300 people” are “shot every 24 hours” in the U.S.

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The editorial began with the board slamming the Supreme Court’s 2022 decision to strike “down a more-than-century-old state law that restricts the right to carry a concealed handgun in public.”

The board lamented how the Court’s decision has made it easier for lawsuits to dismantle any attempt by the New Jersey governor to “sharply limit where guns can be carried in New Jersey.” The board said, “Where you have fewer guns and stricter laws, you have fewer gun injuries and deaths, research has shown. Yet while most people are solidly on his side, the law may not withstand legal challenges.”

The piece then invited readers to imagine a society where establishing gun control wasn’t hard. It provided the example of Canada and its pro-gun control activist leader, Prime Minister Justin Trudeau, as the embodiment of this ideal place. 

It said, “Now imagine a world where we didn’t have to struggle with this. You don’t have to look far for inspiration: There it is, just north of our border, where Prime Minister Justin Trudeau is almost reaching the point of banning gun sales in Canada.”

The editorial added, “They have no Second Amendment, no constitutional right to gun ownership. Guns are treated the same as any other consumer good that the government can regulate.”

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Meanwhile, the board pointed to America as a place where blood is shed thanks to its gun rights: “Meanwhile, in America, we continue to bleed daily, with an average of more than 300 people shot every 24 hours, including 22 children and teens.”

It then blasted the rationale behind the Second Amendment, stating, “The core rationale is that we need guns for self-defense, but what we have is a public policy in which nearly 49,000 people a year are killed by guns and nearly 400 million firearms flood our streets – more than one for every citizen.” 

The board further described this idea of guns for self-defense as a “fanatical interpretation of our Second Amendment” and claimed that the country has a “fetish with gun culture.”

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The board then pined for a country in which “we could regulate guns as we do cars, based on a public health approach.”

It compared America to Canada one last time, stating, “Now even Canada finds its level of carnage unpalatable, and is embracing real change in 2023. If only we could summon the will do to the same. But no: On this side of the border, gun safety is just another broken resolution.”

 

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The latest on the new Congress and House speaker vote

US Rep. Jim Jordan speaks on behalf of Kevin McCarthy on Tuesday.
US Rep. Jim Jordan speaks on behalf of Kevin McCarthy on Tuesday. (Alex Brandon/AP)

Conservative hardliners nominated Rep. Jim Jordan of Ohio on Tuesday to be speaker of the House during the chamber’s second and third votes amid the floor fight for House leadership.

Jordan, in an effort to show party unity, nominated GOP leader Kevin McCarthy in the second round of voting. Speaking on the House floor Tuesday, Jordan said the differences among Republican lawmakers “pale in comparison” to the differences between Republicans and Democrats.

“We need to rally around him,” Jordan said of McCarthy.

Rep. Matt Gaetz of Florida nominated Jordan in the second round where he earned 19 votes. Republican Rep. Chip Roy of Texas, who already voted twice against McCarthy, nominated Jordan for speaker in the third round.

Jordan’s nomination by another member marks a new layer of leadership drama as Republicans take control of the House.

The first order of House business as the 118th Congress convenes is the selection of a new speaker, but McCarthy is being stonewalled by a group of conservative hardliners. Because the GOP holds only a narrow majority, those hardliners hold more influence in the conference and have already denied McCarthy the votes necessary to secure the gavel on initial rounds of balloting.

Key things to know about Jordan: Jordan is a high-ranking conservative and a founding member of the conservative House Freedom Caucus, serving as its first chair from 2015 to 2017, and as its vice chair since 2017. He was the ranking member of the House Oversight Committee from 2019 to 2020. He vacated that position to become the ranking member of the House Judiciary Committee, where he is expected to become chairman in the newly GOP-held House.

Jordan is a close ally of former President Donald Trump. After Joe Biden won the 2020 presidential election and Trump refused to concede while making claims of election fraud, Jordan supported lawsuits to invalidate the election results and voted not to certify the Electoral College results.

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Byron Donalds sets House floor abuzz by switching vote from McCarthy to Jordan

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Rep.-elect Byron Donalds, R-Fla., set the House abuzz on Tuesday when he switched his vote for House Speaker from embattled Republican Leader Kevin McCarthy to Rep. Jim Jordan, R-Ohio – as McCarthy struggles to meet the threshold to gain the gavel.

Donalds had supported McCarthy for the first two votes, which both resulted in no candidate reaching the necessary 218 votes after 19 Republicans defected — the first time in nearly a century that additional votes were needed for a majority’s nominee.

Some rebel Republicans had cast votes for Reps.-elect Andy Biggs, R-Ariz., Jordan, Jim Banks, Lee Zeldin, R-NY, and Donalds himself in the first round. Jordan secured all non-McCarthy GOP votes in the second and third rounds. Democrats, meanwhile, have remained united around Rep.-elect Hakeem Jeffries, D-NY.

On the third vote, Donalds was asked his selection, and chose Jordan, raising the number of Republicans voting for someone other than McCarthy to 20. Jordan has said he is supporting McCarthy.

MCCARTHY FALLS SHORT IN THIRD HOUSE SPEAKER VOTE AS JORDAN GAINS MOMENTUM

The vote by Donalds immediately sparked murmurings throughout the chamber, as well as a round of applause from Republicans lawmakers opposed to McCarthy’s candidacy. Ultimately, Jordan received 20 GOP votes, while McCarthy received 202 and Jeffries received all 212 votes from his fellow Democrats.

In an interview on “Kudlow” after the vote, Donalds said he changed his vote because he doesn’t believe McCarthy has the 218 votes at the moment.

“I voted for Kevin on the first two ballots, and it’s just not clear that he has the votes,” he said.

MCCARTHY SHORT OF VOTES AS HOUSE SPEAKER CONTEST ENTERS FINAL HOURS

He said that McCarthy does have the ability to get to the threshold but “there’s a lot of work to be done.”

“I think just if you’re going to ask members to vote over and over and over again to try to wear people down, I think it actually has the opposite effect,” he said. “My view has been for us to call a recess, get in a room, figure it out, have those conversations and then go back to the floor.” 

Shortly after the vote, the House moved to adjourn until noon on Wednesday, meaning that the chamber will not be electing a speaker until at least that time. No members have been sworn in and cannot be until a speaker is elected.

Fox News’ Kelly Phares and Jessica Chasmar contributed to this report.
 

 

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Jessica Simpson shares photo after finding her 8th grade cheerleading letterman jacket

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Jessica Simpson has still got spirit. 

The Jessica Simpson Collection mogul shared a throwback with fans earlier this week when she posted a photo of herself with her middle school letterman jacket on. 

“Found my 8th grade head cheerleader letter jacket,” Simpson, 42, wrote on Instagram along with a selfie of her in the green and yellow keepsake. Simpson finished the look with an orange beanie and hoop earrings. 

“Yes! Go Vikings!” her younger sister Ashlee Simpson, 38, commented along with a laughing emoji. 

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“U go girl,” Sharon Stone wrote, and Paris Hilton left a heart eyes emoji. 

In recent years, Simpson has been open with her fans about her weight loss journey. The Jessica Simpson Collection mogul said in September after losing the baby weight from her third pregnancy she’s able to fit back into all her old clothes. 

“Oh, gosh, no,” she told Extra at the time when asked if she’s gotten used to the attention on her weight loss. “Would any woman? But Lynda Carter warned me on the set of ‘Dukes of Hazzard.’ She was like, ‘I will always be Wonder Woman and compared to Wonder Woman, and that’s what you’re doing here as Daisy Duke. Just know the words ‘Daisy Duke’ will follow you for the rest of your career.’”

Simpson added, “I’ve been criticized, and it hurts, but I’ve been every weight and I’ve been proud of it. I decided, ‘Okay, everybody is going to talk about my weight all the time, I might as well make money off of it and turn it into a business of selling clothes and acceptance.”

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The mom of three added that she lost the weight she gained after having her daughter, Birdie, in 2019 with the help of a nutritionist. 

“I went to a nutritionist, and I needed to get my eating habits right,” she said.

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“I absolutely feel healthy,” she told the outlet. “I feel like my old self before I had children and all the hormones going wild. I feel younger, actually. I have a lot more energy and yeah, I get to wear all the clothes that are in storage that I saved for [10-year-old daughter] Maxwell and [3-year-old daughter] Birdie. Maybe Birdie will outgrow them because Maxwell has already outgrown me!”

Simpson and husband Eric Johnson also share 9-year-old son Ace. 

 

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Texas grandfather accused of capital murder in stabbing death of 8-year-old grandson

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A Texas man is accused of stabbing his grandson to death on New Year’s Day while his grandson was in his custody. 

Richland Hills Police Department responded to a 911 call from someone at a home on Labadie Drive in Richland Hills, Texas around 7:30 a.m. Sunday, Jan. 1. Responding officers found the body of an 8-year-old boy who had been stabbed to death.

A family member identified the boy as Brenym McDonald. 

“Upon arrival, officers made entry to the residence and located what we now know to be a deceased 8-year-old male,” Richland Hills officer Sheena McEachran. “There was a weapon, edged blade weapon involved in this incident and that weapon has been recovered.”

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The young boy’s great-grandmother Linda Hubbard said the boy and his parents were living with the boy’s grandfather, 62-year-old Phillip Hughes.

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“They were staying here with the grandfather until they could get him another place to live,” Hubbard said. “They kind of stayed away from him. I can’t say much about that.”

After finding the body, first responders located Hughes, who was walking near the middle school a few blocks away from the home. His arrest was captured on a neighbor’s doorbell camera.

Police are still investigating to determine a motive for the violent stabbing.

“We have lots of questions, just like everyone else has. And throughout the investigation we’ll hopefully be able to answer all the questions and why this tragedy occurred,” said Officer Sheena McEachran with the Richland Hills Police Department. “There’s not a lot of words right now to describe a lot of the feelings involved, but we are doing everything we can to investigate this fully and making sure we bring justice for the family.”

Hughes did have a previous arrest and was convicted for driving while intoxicated.

Hughes is being held at the joint detention center at the North Richland Hills Police Department, where he is being held for capital murder. On Monday, Jan. 2, Hughes appeared in court, where a judge set his bond for $2 million.

 

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Idaho murders: PA police say ‘force was used’ when search warrant was executed at Kohberger home

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Law enforcement officials broke windows and doors when executing an overnight search warrant in the arrest of Idaho quadruple murder suspect Bryan Kohberger, Pennsylva police said Tuesday.

Pennsylvania State Police Major Christopher Paris said during an afternoon press conference that “force was used” to gain access to the Kohbergers’ home during the early morning hours of Dec. 30 in Albrightsville, Pennsylvania.

“There were multiple windows that were broken, I believe, to gain access, as well as multiple doors,” Paris said during the press conference Tuesday afternoon, adding that Bryan Kohberger’s parents were home at the time.

Paris said that preparations for the search warrants execution began on the evening of Dec. 29, and added that around 50 “tactical assets” were on scene.

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Mike Mancuso, Monroe County first assistant district attorney, said he believes that Kohberger wants to waive extradition because he wants to see what’s inside the affidavits of probable cause.

“Having read those documents and the sealed affidavits of probable cause, I definitely believe that one of the main reasons the defendant chose to waive extradition and hurry his return back to Idaho was the need to know what was in those documents. So that’s a significant development,” Mancuso said.

Kohberger, 28, signed an extradition document during a court hearing on Tuesday afternoon and waived his right to challenge the arrest on four counts of first-degree murder.

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“Yes,” Kohberger said when Judge Margherita Worthington asked if he wishes to “waive the rights that I have just explained to you and return to the state of Idaho?”

Kohberger, a teaching assistant and Ph.D. student at Washington State University’s Department of Criminal Justice, was arrested on Dec. 30 by local police and agents from the Federal Bureau of Investigation at his parents’ home in Albrightsville.

Paris said that Kohberger was taken into custody “without incident.”

IDAHO MURDERS: BRYAN KOHBERGER SEEN ON BODY CAMERA FOOTAGE DURING TRAFFIC STOP IN INDIANA

He is being charged in connection to the fatal Nov. 13 stabbings of University of Idaho students Kaylee Goncalves, Ethan Chapin, Xana Kernodle and Madison Mogen, during the early morning hours in Moscow, Idaho.

Kohberger is facing four counts of first-degree murder and one count of felony burglary for “breaking into the home with intent to commit murder,” Latah County Prosecutor Bill Thompson said during a press conference on Friday.

Court documents in Idaho are under seal until Kohberger is brought to Idaho and is served with an arrest warrant, Thompson said.

IDAHO MURDER SUSPECT KOHBERGER’S PENNSYLVANIA CLASSMATES SAY HE WAS ‘BRIGHT,’ AWKWARD, BULLIED IN SCHOOL

The suspect lives in student housing located in Pullman, Washington, around 10 minutes from where the crime happened.

Kohberger’s father met up with his son for a cross-country road trip where they were pulled over in Indiana twice, according to a public defender.

Kohberger’s family said in a statement they will be supporting their son.

“We have fully cooperated with law enforcement agencies in an attempt to seek the truth and promote his presumption of innocence rather than judge unknown facts and make erroneous assumptions,” the statement reads.

Fox News’ Stephanie Pagones and Rebecca Rosenberg contributed to this report.

 

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