Former Crypto Titan Sam Bankman-Fried Pleads Not Guilty to Fraud | Crypto News

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The 30-year-old FTX founder, who was previously worth around $26 billion, could face up to 115 years in prison in the United States.

In the United States, former cryptocurrency tycoon Sam Bankman-Fried has pleaded not guilty to fraud charges, denying allegations that he defrauded investors of billions of dollars.

On Tuesday, attorneys for Bankman-Fried, 30, founder of now-insolvent cryptocurrency exchange FTX, pleaded not guilty during an arraignment hearing before U.S. District Judge Lewis Kaplan in New York.

Prosecutors have accused Bankman-Fried of committing large-scale fraud, alleging he misappropriated billions of dollars in investor funds to buy real estate, make political donations and support his gold-trading hedge fund. cryptocurrency, Alameda Research.

Bankman-Fried faces charges of wire fraud and conspiracy to launder money. He could face a 115-year sentence if convicted. Judge Kaplan has set a provisional trial date for October 2 this year.

Prior to his chaotic fall, Bankman-Fried was hailed as a mover and shaker in the emerging digital currency scene, amassing a fortune that once reached around $26 billion and using his wealth to become an influential contributor to American politics. .

In early November, however, FTX experienced a meltdown amid fears that the cryptocurrency exchange was insolvent. Investors rushed to withdraw their money, wiping out Bankman-Frieds’ fortune.

Without sufficient funds, FTX was forced to stop processing withdrawals, leaving some investors unsure if they would ever receive their money. The company declared bankruptcy on November 11.

Bankman-Fried was extradited from the Bahamas in December, where he lived and where FTX was located. He was released on $250 million bail on December 22 and is living with his parents in Palo Alto, Calif., under electronic surveillance while awaiting trial.

If you were involved in misconduct at FTX or Alameda, now is the time to get ahead, U.S. Attorney Damian Williams said in a statement, encouraging others involved in the scandal to come forward. We move quickly and our patience is not eternal.

Ahead of Tuesday’s indictment, Williams announced the creation of a federal investigation into FTX business dealings, called the Southern District of New York (SDNY) FTX Task Force. He would be responsible for investigating and prosecuting any other irregularities arising from the scandal.

This is a time when everyone is on deck. We are launching the SDNY FTX Task Force to ensure this urgent work continues, fueled by all of SDNY’s resources and expertise, until justice is served, Williams said in a press release.

Last month, former Alamedas chief executive Caroline Ellison and former FTX chief technology officer Gary Wang agreed to cooperate with prosecutors and pleaded guilty to numerous charges, including fraud.

During a December 19 plea hearing, Ellison said Bankman-Fried and other FTX executives received billions of dollars in secret loans from Alameda Research.

We prepared certain quarterly balance sheets that hid the extent of Alameda’s borrowings and the billions of dollars in loans Alameda had made to FTX executives and related parties, Ellison told U.S. District Judge Ronnie Abrams before a court. federal court in Manhattan, according to a transcript.

Ellison and Wang also settled civil charges brought by the United States Securities and Exchange Commission and the Commodity Futures Trading Commission.

FTX’s implosion and Bankman-Fried’s scrutiny have renewed questions about the future of the cryptocurrency, which has sparked frenzied interest from investors big and small, as well as skepticism and speculation. fraud charges.

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