Sam Bankman-Fried, the former CEO of FTX, has entered a not-guilty plea to all federal charges stemming from the demise of the cryptocurrency exchange, including wire fraud, securities fraud, and breaking campaign funding rules. In the U.S., the former CEO of FTX is accused of eight crimes, and if found guilty, he could spend 115 years in jail.Â
In a recent interview with Tifanny Fonng in Sam’s parent’s house, Sam had earlier revealed he would not be pleading guilty to accusations against him while addressing his experience in jail.
In their first court appearance since December, SBF’s counsel pleaded not guilty on his behalf, according to several spectators in the Southern District of New York’s United States District Court on January 3.Â
What now?
One of the prosecutors in the lawsuit against the former FTX executive, Assistant U.S. Attorney Danielle Sassoon, allegedly stated that her team planned to deliver evidentiary papers to SBF’s attorneys within the next two weeks. According to court records, Sassoon’s trial was set to begin on October 2 and was expected to last four weeks.
[DB] Sassoon Says Prosecutors Have Discussed With Bankman-Fried's Defense a Potential Trial Date of September or October 2023: RTRS
— db (@tier10k) January 3, 2023
The former CEO of FTX had been in California since December 22 while under house arrest, but he traveled back to New York for the plea hearing. In addition, Bankman-bail Fried was constrained by Judge Lewis Kaplan to ensure that he wouldn’t access or transfer any bitcoin or assets from FTX or Alameda; this was probably in reaction to rumors that he had transferred money from Alameda wallets while at home.
Sam Bankman-Fried has arrived in court for his arraignment. We’re told he will plead not guilty to all the charges against him. pic.twitter.com/yakSLkOus8
— Connell McShane (@connellmcshane) January 3, 2023
Bankman-Fried allowed privacy to bond details
During the same hearing, the judge allowed SBF’s legal counsel’s request to redact identifying information on those serving as sureties for his $250 million bond. Since posting bail in December, Bankman-parents Fried’s have allegedly become “the subject of increased public attention, abuse, and threats.”
Allegations that SBF and other FTX officials utilized funds from the cryptocurrency exchange to fund investments through Alameda Research without the knowledge or agreement of users or investors form the basis of the prosecution’s case against him. On November 11, the Exchange filed for bankruptcy.
Gary Wang, a co-founder of FTX, and Caroline Ellison, the former CEO of Alameda, both entered guilty pleas to charges associated with the matter; the latter claimed that from 2019 to 2022, FTX served as a “borrowing facility” for Alameda. While FTX was going through bankruptcy, John Ray took over as CEO. He also addressed legislators at an inquiry into the company’s demise in December.
