The former FTX CEO is accused of eight offenses in the US, and if found guilty, he could spend 115 years in prison.
Sam Bankman-Fried, the former CEO of FTX, has entered a not guilty plea to all federal charges brought against him in connection with the demise of the cryptocurrency exchange, including wire fraud, securities fraud, and violations of campaign financing laws.
Bankman-Fried counsel reportedly submitted a not guilty plea on SBF’s behalf in his first court appearance since December, according to numerous spectators in the Southern District of New York’s United States District Court on January 3. Bankman-Fried is accused of eight crimes, and if found guilty, he may spend 115 years in prison.
One of the prosecutors in the case against the former FTX executive, Assistant U.S. Attorney Danielle Sassoon, reportedly stated that their team planned to deliver evidence documents to SBF’s attorneys within the next two weeks. The former FTX CEO had been under house arrest since December 22 at his parent’s residence in California, but he traveled back to New York for the plea negotiation. According to Reuters, Sassoon was planning on a four-week experiment beginning in September or October.
Judge Lewis Kaplan granted SBF’s motion to redact identifying information on people serving as sureties for his $250 million bond during the same hearing after hearing from the defense side. Since posting bail for Bankman-Fried in December, it is claimed that his parents have become “the target of intense media scrutiny, harassment, and threats.”
Allegations that Bankman-Fried and other FTX officials utilized assets 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 SBF. On November 11th, the Exchange filed for bankruptcy.
Gary Wang, a co-founder of FTX, and Caroline Ellison, a former CEO of Alameda, have already admitted guilt on related charges. Caroline Ellison 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 lawmakers during a hearing in December about the company’s demise.