Sam Bankman-Fried Pleads Not Guilty To Federal Fraud Charges In New York

Sam Bankman-Fried pleaded not guilty in New York federal court Tuesday to eight charges related to the collapse of his former crypto exchange FTX and hedge fund Alameda Research. CNBC reports: The onetime crypto billionaire was indicted on charges of conspiracy to commit wire fraud and securities fraud, individual charges of securities fraud and wire fraud, money laundering and conspiracy to avoid campaign finance regulations. The trial will begin on Oct. 2. [...] Earlier in the day, attorneys for Bankman-Fried filed a motion to seal the names of two individuals who had guaranteed Bankman-Fried release on bail with a bond. They claimed that the visibility of the case and the defendant had already posed a risk to Bankman-Fried's parents, and that the guarantors should not be subject to the same scrutiny. [Judge Lewis Kaplan] approved the motion in court. Federal prosecutor Danielle Sassoon told the court that Bankman-Fried had worked with foreign regulators to transfer assets that FTX's U.S. management had been attempting to recover through the Chapter 11 bankruptcy process. Regulators in the Bahamas and FTX's U.S. lawyers have been fighting for weeks in Delaware bankruptcy court over hundreds of millions, if not billions, of dollars worth of cryptocurrency. FTX's attorneys insist that Bahamian regulators have illicitly transferred hundreds of millions of dollars, and that Bankman-Fried assisted them. Bahamian regulators say that local laws give them jurisdiction over those assets, and dispute the validity of the U.S. Chapter 11 proceedings. Federal prosecutors appear to agree with FTX's U.S. attorneys. Sassoon asked Kaplan to impose a new restriction barring Bankman-Fried from transferring or accessing FTX customer assets. The judge approved that motion as well. The U.S. attorney's office for the SDNY had argued that Bankman-Fried used $8 billion worth of customer assets for extravagant real estate purchases and vanity projects, including stadium naming rights and millions in political donations. Federal prosecutors built the indictment against Bankman-Fried with unusual speed, packaging together the criminal charges against the 30-year-old in a matter of weeks. The federal charges came alongside complaints from the Commodity Futures Trading Commission and the Securities and Exchange Commission.

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