Sam Bankman-Fried, the former co-founder of the infamous bankrupt crypto exchange FTX, has pleaded not guilty to eight federal charges related to his role in the company’s collapse. If convicted, he could face up to 115 years in prison.
The FTX collapse sent shockwaves throughout the industry. In early November, the exchange was forced to close after a series of withdrawals from investors. According to prosecutors, executives used customer funds for extravagant purchases. They also used the funds to make loans. Some of the money was allegedly used for campaign finance violations and money laundering.
During the hearing, Bankman-Fried did not speak to reporters. Instead, he sat silently in the courtroom. He did not even shake hands with the prosecutor. However, he was surrounded by a large media scrum when he arrived.
The alleged scammer entered the courtroom wearing a dark suit and backpack. He sat silently in the courtroom while his attorney announced his plea.
In addition to the eight criminal counts, Bankman-Fried faces a separate civil fraud case filed by the Securities and Exchange Commission. Both cases are based on accusations that he used the customers’ funds for his own benefit.
The prosecution said that Bankman-Fried was responsible for a “wide-ranging fraud”. He allegedly used the funds to make purchases that were illegal and not authorized. It is also alleged that he illegally commingled these funds.
Federal prosecutors expect to produce evidence for the defense team within four weeks. The government has already accessed many of the materials it will use during the trial.
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