FTX Founder Sam Bankman-Fried Pleads Not Guilty, Trial in October

Disgraced former FTX CEO Sam Bankman-Fried pleaded not responsible to prison fees of fraud, conspiracy, marketing campaign finance legislation violations, and cash laundering in a New York federal court docket, establishing a authorized battle along with his former enterprise companions.

Key Takeaways

  • Sam Bankman-Fried pleaded not responsible to prison fees.
  • The trial date is about for October 2, 2023.
  • Bankman-Fried’s attorneys requested that the names of the 2 individuals who will signal on as sureties for his $250 million bail bundle be redacted.

Enterprise Companions Admit Fraud

The decide set a trial date for Oct. 2, 2023. If convicted, Bankman-Fried might resist 115 years.

Bankman-Fried is accused of stealing buyer funds from FTX to cowl loans taken out by Alameda Analysis, FTX’s affiliated crypto hedge fund. It’s alleged he used the funds to put money into different corporations, donate to political campaigns, and use them for his personal profit.

Gary Wang, the co-founder of FTX, and Caroline Ellison, who served as Alameda’s CEO, have each pleaded responsible to a number of prison fees and are cooperating with federal prosecutors. Ellison has admitted to concealing billions of {dollars} in loans for FTX.

“We ready sure quarterly stability sheets that hid the extent of Alameda’s borrowing and the billions of {dollars} in loans that Alameda had made to FTX executives and to associated events,” Ellison instructed U.S. District Choose Ronnie Abrams in Manhattan federal court docket.

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Wang stated he was directed to make modifications to FTX’s code to provide Alameda particular privileges on the buying and selling platform whereas being conscious that others had been telling buyers and clients that Alameda had no such privileges.

Lawyer Requests Redaction of Names

Bankman-Fried is out on a $250 million bail bundle and is below home arrest at his dad and mom’ house in California. He was arraigned in federal court docket in Manhattan, the place his legal professional Mark Cohen entered the plea of not responsible to all counts. In a letter filed on Tuesday, Bankman-Fried’s attorneys requested that the names of the 2 individuals who will signal on as sureties for his $250 million bail bundle be redacted.

The attorneys for Bankman-Fried wrote that if the identities of the 2 remaining surities are revealed in public, they are going to probably be focused for harassment and media scrutiny, and their security and privateness might be compromised.  

Bankman-Fried’s dad and mom, who co-signed the bond, have been receiving bodily threats since FTX’s collapse, in accordance with attorneys.

The Backside Line

Bankman-Fried’s not-guilty plea places him at odds along with his former enterprise companions, who’ve already admitted to fraud and the concealment of funds. Each Ellison and Gary Wang are cooperating with prosecutors as a part of their plea agreements.