Sam Bankman-Fried, the creator of the cryptocurrency exchange FTX, has pleaded not guilty to misleading investors. A trial date of October 2 has been set.
Bankman-Fried pled not guilty to an eight-count criminal charge and was released soon before Christmas Day on a $250 million bond, which federal prosecutors in Manhattan billed as possibly the biggest in U.S history.
Sam Bankman-Fried Case
The 30-year-old asserted his innocence on two counts of wire fraud and six counts of conspiracy, including conspiracy to launder funds from his crypto-trading platform to his hedge fund and violation of campaign finance rules. At the crowded hearing, Federal Judge Lewis Kaplan set the trial date for October 2nd.
Throughout the 30-minute proceeding, Bankman-Fried, who wore a navy suit, patterned tie, and brown leather shoes, nervously chewed the sides of his mouth. If convicted on charges that he diverted mounds of FTX customers, investors, and lenders’ cash to his trading firm, Alameda, he faces more than a century in prison.
Read more: FTX bankruptcy: US investigators look into $372 million hacking theft
FTX Fraud Victims
Sassoon stated in June that Bankman-Fried borrowed billions from FTX, the second largest crypto trading platform in the world, to settle loans Alameda was unable to repay. She stated that funds were also laundered through political and philanthropic donations.
Sassoon stated that the walls fell in November when Alameda’s balance sheets were exposed and the CEO of the world’s largest cryptocurrency exchange, Binance, tweeted about FTX. This caused a rush in consumer withdrawals, disclosing the $8 billion gap in its coffers.
On November 11, FTX, which at its peak was worth more than $30 billion, filed for Chapter 11 bankruptcy protection. Sassoon claimed that about one million people were defrauded due to the unique and disguised link between FTX and Alameda.
Since his initial appearance on December 22 following his extradition from the Bahamas, where FTX was located, Bankman-Fried has been free on a $250 million bail, the largest of its type.
Friday, Bankman-attorney Fried’s Mark Cohen reiterated his client’s denial that he had interfered with the accounts in a tweet. However, Sassoon stated that prosecutors do not accept his word.
Read more: Former FTX CEO’s sister company pleads guilty to 7 charges
