In a development that many expected, former CEO Sam Bankman Fried officially pleads not guilty in the FTX fraud case. At Tuesday’s hearing, the disgraced founders officially pleaded for criminal charges from U.S. fraud and conspiracy prosecutors,
Bankman-Fried is accused of using client funds from his now-bankrupt crypto exchange platform to fund bets through hedge fund Alameda Research. In addition, his not guilty plea differs from the action taken by Alameda CEO Caroline Ellison and co-FTX founder Gary Wang.
Bankman-Fried pleads guilty to FTX fraud
Due to the relatively young history of the crypto industry, there has not been a scandal on the scale of FTX. Formerly one of the largest and most well-known crypto exchange platforms in the world, now bankrupt and the top executive sued for fraud.
Once upon a time, FTX was a guideline for the entire market. As the year presented unheard-of challenges, it was Sam Bankman-Fried and company who spearheaded a way forward. Yet today is Seminole Day when Sam Bankman-Fried pleaded not guilty in the high-profile fraud case.
Arguments today before Manhattan District Judge Lewis Kaplan came as no surprise. It followed reports of Reuters which initially listed the IOU as a possibility. Conversely, his IOU is one that can be changed at a later date, should he wish.
The former crypto prodigy faces two counts of wire fraud and six counts of conspiracy. In addition, these include conspiracy to launder money and campaign finance violations. If convicted, Bankman-Fried could face up to 115 years in prison.
The latest hearing followed Bankman-Fried’s earlier release on $250 million bail following his extradition from Bahamian custody. Bankman-Fried is currently based at his parents’ home in California and was held for eight days at the notorious Fox Hill Prison in the Bahamas prior to his extradition.