Sam Bankman-Fried pleads not guilty to fraud charges in Manhattan court

Sam-Bankman-Fried-FTX scam
Written by Johnson Philip

Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, has entered a plea of not guilty to the fraud charges brought against him in a U.S. District Court in Manhattan. The 30-year-old businessman, who was recently extradited to the United States from the Bahamas, is facing a total of eight charges from federal prosecutors in connection with the collapse of his cryptocurrency empire, which at one point had given him a net worth of $26 billion. The charges he is facing include wire fraud, securities fraud, violating campaign finance laws, and conspiracy charges.

According to reports, Bankman-Fried’s lawyer, Mark Cohen, stated in court that “he pleads not guilty to all counts.” This plea was expected, as Bankman-Fried conducted a press tour before being taken into custody, during which he admitted to having “fucked up” but ultimately sought to deflect responsibility for the collapse of FTX. He claimed that he was essentially unaware of how his own exchange, and its sister hedge fund Alameda Research, were being run. Alameda’s CEO, Caroline Ellison, has since pleaded guilty to fraud charges and is cooperating with prosecutors.

The sudden implosion of FTX in November, which saw the company run out of money to honor customer withdrawals, sent shockwaves through the cryptocurrency industry and beyond. In the aftermath of the collapse, numerous reports emerged suggesting that FTX had used billions of dollars in customer deposits to prop up Alameda Research, which had itself declared bankruptcy. The interconnections between the exchange and the hedge fund, both of which were founded by Bankman-Fried, were described as dangerously intertwined.

The collapse of FTX and the tarnishing of Bankman-Fried’s public image as a benevolent and regulation-friendly billionaire had a significant impact on the cryptocurrency industry and on politics in Washington D.C., where Bankman-Fried had gained considerable influence as a prolific political donor and witness before Congress. He is currently out on a record $250 million bail.

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