FTX founder Bankman-Fried pleads ‘not guilty’
DAs expected, the founder of the collapsed cryptocurrency exchange FTX pleaded not guilty during a first hearing before an American court on Tuesday. The US authorities, however, accuse Sam Bankman-Fried of “fraud of epic proportions” and money laundering. In addition, with his multimillion-dollar donations for the presidential candidacy Joe Biden and whose Democrats are violating party donation laws.
The actual process is likely to begin in September or October. If convicted, the 30-year-old faces up to 115 years in prison. Regardless, FTX customers plan to file a class action lawsuit. On bail of $250 million, Bankman-Fried will not be in custody for the time being, but is under arrest at his parents’ house.
Two FTX top executives have pleaded guilty. After rumors of irregularities and a failed rescue by arch-rival Binance, investors withdrew money from FTX on a large scale in November 2022. The crypto exchange then applied for bankruptcy protection. According to insiders, Bankman-Fried secretly transferred $10 billion in customer funds to Alameda. Bankman-Fried admits mistakes, but rejects allegations of criminal acts.
