New York, January 3. The founder of cryptocurrency platform FTX, Sam Bankman-Fried, pleaded Tuesday in New York federal court not guilty to multiple felony charges against him by US authorities following the bankruptcy of his company, which came to be valued at $32,000 million, according to the local media.
The young entrepreneur (known by his initials, SBF) appeared in person before the judge, amid a large media presence, to answer eight charges brought against him by the Attorney for the Southern District of New York, including fraud, email, money laundering, and violation of political campaign finance laws.
SBF was extradited to New York last month from the Bahamas, the company’s headquarters and where he resided, but has remained on probation since December 22 at his parents’ home in Palo Alto (California, USA) after accepting one of the highest bails bonds in US history, at $250 million.
The alleged fraudster, who faces a maximum of 115 years in prison if convicted of all crimes in this case, is due to begin his trial on Oct. 2, the judge ordered.
SBF, 30, wore a suit without a tie and was accompanied by his mother, lawyers and several bodyguards, who elbowed their way through photographers crowding near the courthouse, videos posted on Twitter show.
Precisely due to the great expectation, the defendant’s defense had asked the Judge not to reveal the names of two guarantors who covered his large bail – in addition to his parents – to avoid “intrusion into his privacy, as well as threats and harassment”. to which the magistrate agreed.
Ahead of the appearance, Attorney Damian Williams announced that his office has created a special task force that will deal with “matters related to FTX’s downfall,” including the recovery of victims’ defrauded assets, according to the New York PostJournal. .
FTX filed for bankruptcy Nov. 11 after a rapid collapse after many users scrambled to withdraw their funds amid reports questioning the company’s creditworthiness, and its debacle wreaked havoc in the industry.
Carolyn Ellison, who was the chief executive officer of Alameda Research – the investment arm of FTX, also founded by the defendant – and Gary Wang, the co-founder of FTX, had previously pleaded guilty to criminal charges related to their role in the fraud that contributed to the company’s downfall.
SBF also faces allegations of fraud from regulators of the stock market and the derivatives market in the United States.
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