Home » FTX founder Sam Bankman-Fried pleads not guilty in crypto case

FTX founder Sam Bankman-Fried pleads not guilty in crypto case

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NEW YORK — FTX founder and cryptocurrency guru Sam Bankman-Fried pleaded not guilty through his lawyers in an arraignment on Tuesday, concealing the illegal handling of funds that he controls. He was charged with defrauding corporate customers and investors and embezzling billions of dollars.

Bankman-Fried, 30, who was extradited from the Bahamas last month and has been under house arrest on a bond of $250 million for nearly two weeks, is appearing in court for the second time in Manhattan. Bankman-Fried wears an ankle monitor and must remain at his parents’ home in Palo Alto, California, except for court appearances and exercise sessions.

He arrived at the courthouse more than an hour before the case was called and stepped out of the black SUV to find himself surrounded by a mob of cameramen.

U.S. District Judge Louis A. Kaplan, who is currently overseeing the case, said: Anonymity to the two parties who must uphold his bond with Bankman-Fried’s parents. A former judge has ordered that one of his two additional persons should not be a relative.

Usually the guarantor is identified in court and his name is a matter of public record. On Tuesday morning, Bankman-Fried’s attorneys filed a letter to Kaplan seeking anonymity for the remaining two of him, citing security concerns and that Bankman-Fried’s parents are both professors at Stanford Law School. and noted that it had received an alarming communication.

“In recent weeks, Mr Bankman-Fried’s parents have been the target of intense media scrutiny, harassment and intimidation,” the letter said. “In particular, Mr Bankman-Fried’s parents have received a constant stream of threatening communications, including those expressing a desire to inflict bodily harm.”

Completing a petition is standard at the start of a lawsuit. The 30-year-old may change his plea as the case progresses on his own or as part of negotiations with prosecutors.

Two of Bankman-Fried’s closest associates have already signed a cooperative agreement with the Manhattan federal attorney’s office, and prosecutors appear to have gathered significant evidence in a relatively short period of time.

Prosecutors say Bankman-Fried’s personal fortunes have also taken a big hit as his empire crumbled around him. FTX was his third largest cryptocurrency exchange in the world, and the brand benefited from ads featuring powerful celebrities, including athletes like Tom Brady and Stephen Curry.

The collapse of FTX in early November marked a major shift in the cryptocurrency landscape and shook customer and investor confidence in other major exchanges. His Bankman-Fried, who has been charged with wire fraud, conspiracy and related charges, faces a sizeable prison sentence if convicted in what prosecutors called a “very strong” case. will be He faces up to his 115-year prison sentence.

Washington Post reporters Tory Newmeyer, Julian Mark, and Peter Horrisky explain what caused the shocking collapse of crypto exchange FTX. (Video: Joy Yi/The Washington Post, Photo: Stefani Reynolds/Bloomberg/The Washington Post)

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