The founder of the bankrupt cryptocurrency platform FTX, Sam Bankman-Fried, who is accused of fraud, among other things, pleaded not guilty in a court in New York on Tuesday. At the hearing, the 30-year-old himself did not comment, he let his lawyer speak for himself. According to the judge, the trial against Bankman-Fried is expected to begin on October 2.
The FTX founder was arrested in the Bahamas, where he lives and where his company is based. Then he was extradited to the United States. In the United States, he is accused of fraud, money laundering and violations of campaign finance laws, among other things.
After his extradition, Bankman-Fried was released on $250 million bail. However, in US proceedings, only a fraction of the bail amount usually has to be deposited. Bankman-Fried said in November that he only had around $100,000 left. According to US media, the house of his parents, two professors at the US elite university Stanford, was brought in as security for the bail application.
Five of the eight counts of the New York prosecutor’s office can carry a maximum sentence of 20 years each. If convicted on all charges, Bankman-Fried could theoretically face up to 115 years in prison. Two of his longtime business partners, Caroline Ellison and Gary Wang, have pleaded guilty in connection with the collapse of FTX.
Bankman-Fried had embodied the rise of cryptocurrencies to a supposedly serious investment like no other. However, in early November, the business construct collapsed when it was revealed that FTX was mainly holding its client funds in a specially issued cryptocurrency with no equivalent. On November 11, the company filed for bankruptcy, rocking the crypto world.
