Sam Bankman-Fried Enters a Not Guilty Plea In FTX Fraud Case

  • SBF extradited from the Bahamas and appeared in federal court in New York.
  • Sam Bankman-Fried pleaded not guilty to federal charges.

Former FTX CEO Sam Bankman-Fried pleaded not guilty to federal charges in New York on Tuesday. SBF charged with conspiracy to commit wire fraud and securities fraud. And also individual accusations of securities fraud and wire fraud, money laundering, and conspiracy to circumvent campaign financing restrictions.

At the beginning of the December, the U.S. attorney’s office for the Southern District of New York filed criminal charges against the ex-billionaire. Post the cryptocurrency exchange crash, he became a suspect in masterminding the greatest financial scam in U.S. history.

Bail Granted on $250M Bond

Gary Wang, the former FTX CTO, and Caroline Ellison, the former CEO of FTX’s sister business Alameda research, both recognize their shortcomings. This is why SBF’s decision to not enter a guilty plea is so striking. This widely anticipated since before his arrest he had attributed the unlawful transfer of monies to Alameda Research to inaccurate records and bank accounts.

SBF was extradited from the Bahamas and appeared in federal court in New York. He was granted bail on the bond of $250M and allowed to live at his parents’ Palo Alto, California home until the outcome of his case.

The collapse of FTX and its sister company, Alameda, has sent shockwaves across the nascent cryptocurrency market. According to the investigation, SBF funneled funds from FTX clients to pay for operational expenses and obligations at his trading firm, Alameda Research. In November, both companies filed for bankruptcy.

Prosecutors argue that SBF and its accomplices engaged in criminal activity as early as 2019. He has been dishonest about Alameda’s financial status, misleading both investors and consumers.

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A devoted content writer having 3 years of crypto trading experience. Loves cooking and swimming. Stays up to date with the latest developments on blockchain technology.