FTX Crypto CEO Sam Bankman-Fried Pleads Not Guilty In Manhattan Federal Court

FTX Crypto CEO Sam Bankman-Fried Pleads Not Guilty In Manhattan Federal Court

Sam Bankman-Fried, a disgraced crypto executive, entered a not guilty plea to federal criminal charges on Tuesday and was tentatively set to go on trial on October 2.

Bankman-Fried showed up before Judge Lewis Kaplan wearing a dark suit and tie. His mop of messy hair made him easily recognizable. Behind him on the bleacher seats was his mother.

During the hearing, the former CEO of the insolvent cryptocurrency exchange FTX remained silent. Mark Cohen, who is his attorney, pleaded not guilty on his behalf.

“He pleads not guilty to all counts,” Cohen said.

There are eight counts of fraud and conspiracy against Bankman-Fried.

Federal prosecutors claim that Bankman-Fried directed billions of dollars in FTX customer and investor funds to his privately managed hedge fund Alameda Research, so orchestrating one of the “largest financial frauds in American history.”

According to court documents, more cash were utilized to purchase opulent real estate and donate tens of millions to political causes.

Bankman-Fried stated in several interviews, including one with ABC News, before to his arrest last month that he was unaware of any inappropriate use of customer cash at the since-bankrupted cryptocurrency exchange FTX.

Bankman-Fried has been staying at his parents’ house in Palo Alto, California, free on bond and under electronic surveillance. On December 21, he was returned from the Bahamas, where he was residing in a multimillion dollar estate.

Gary Wang and Caroline Ellison, two of his former coworkers, have pled guilty and promised to assist investigators.

Bankman-girlfriend Fried’s and former Alameda CEO Ellison entered a guilty plea to seven counts. Wang, who founded FTX alongside Bankman-Fried, entered a guilty plea to four charges.

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