FTX Crypto CEO Sam Bankman-Fried Pleads Not Guilty in Manhattan Federal Court

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ABC News

(NEW YORK) Disgraced crypto executive Sam Bankman-Fried pleaded not guilty to federal criminal charges in Manhattan on Tuesday and was tentatively scheduled to stand trial Oct. 2.

Bankman-Fried, instantly recognizable by his mop of scruffy hair, appeared before Judge Lewis Kaplan in a dark suit and tie. His mother sat behind him on the spectator benches.

The former CEO of bankrupt crypto exchange FTX did not speak during the hearing. His attorney, Mark Cohen, pleaded not guilty on his behalf.

He pleads not guilty to all counts, Cohen said.

Bankman-Fried was charged with eight counts of fraud and conspiracy. Federal prosecutors have alleged that Bankman-Fried orchestrated one of the biggest financial frauds in American history by directing billions of money from FTX clients and investors and funneling it into his private hedge fund Alameda Research.

Other funds were used to purchase lavish real estate and make tens of millions in political donations, court records show.

The number of victims of the FTX fraud could exceed one million, a prosecutor said during Tuesday’s hearing.

FTX was the second-largest crypto exchange, prosecutor Danielle Sassoon said.

Prior to his arrest last month, Bankman-Fried insisted in numerous interviews, including one with ABC News, that he was unaware of any misuse of customer funds at crypto exchange FTX. , now bankrupt.

Bankman-Fried was released on bail and electronically monitored while living with his parents in Palo Alto, California. The judge added a release condition that prevents Bankman-Fried from accessing or transferring any assets of FTX or Alameda Research.

Reflecting the complexity of the case, federal prosecutors announced on Tuesday that they are bringing additional resources to try to find the stolen billions that disappeared from FTX.

Bankman-Fried was extradited from the Bahamas, where he was living in a multimillion-dollar mansion, on December 21.

Two of his former colleagues, Caroline Ellison and Gary Wang, pleaded guilty and agreed to cooperate with prosecutors

We prepared certain quarterly balance sheets that hid the extent of Alameda’s borrowings and the billions of dollars in loans that Alameda had made to FTX executives and related parties. I also understand that FTX failed to disclose to investors in FTX shares that Alameda could borrow a potentially unlimited amount from FTX, thereby putting clients’ assets at risk, Ellison said during his closed plea hearing. ended last month, according to a transcript obtained by ABC News. .

Ellison, former CEO of Alameda and girlfriend of Bankman-Fried, pleaded guilty to seven counts. Wang, co-founder of FTX with Bankman-Fried, pleaded guilty to four counts.

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