{"id":288,"date":"2023-01-03T23:05:09","date_gmt":"2023-01-03T23:05:09","guid":{"rendered":"https:\/\/260web.com\/news\/sam-bankman-fried-pleads-not-guilty-to-fraud\/"},"modified":"2023-01-03T23:05:09","modified_gmt":"2023-01-03T23:05:09","slug":"sam-bankman-fried-pleads-not-guilty-to-fraud","status":"publish","type":"post","link":"https:\/\/260web.com\/news\/sam-bankman-fried-pleads-not-guilty-to-fraud\/","title":{"rendered":"Sam Bankman-Fried pleads not guilty to fraud"},"content":{"rendered":"

Sam Bankman-Fried pleads not guilty to fraud<\/p>\n

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\"Sam<\/picture><\/span>Getty Images<\/span><\/div>\n<\/figure>\n<\/div>\n
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By Natalie Sherman<\/div>\n
Business reporter, New York<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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The former boss of collapsed cryptocurrency exchange FTX has officially denied charges that he defrauded customers and investors.<\/b><\/p>\n<\/div>\n<\/div>\n

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Sam Bankman-Fried pleaded not guilty in a US court to claims that he took customer deposits at FTX to fund his other firm, Alameda Research, buy property and make political donations. <\/p>\n<\/div>\n<\/div>\n

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He was released after his arrest last month on a $250m (\u00a3208m) bail package.<\/p>\n<\/div>\n<\/div>\n

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But he faces more than 100 years in prison if convicted.<\/p>\n<\/div>\n<\/div>\n

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Judge Lewis Kaplan set a trial date of 2 October. <\/p>\n<\/div>\n<\/div>\n

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Two of Mr Bankman-Fried’s closest colleagues have pleaded guilty already and are cooperating with the investigation, which has shaken the entire cryptocurrency industry. <\/p>\n<\/div>\n<\/div>\n

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In interviews before his arrest, the 30-year-old former billionaire admitted failings but put the problems down to his own “mistakes”. <\/p>\n<\/div>\n<\/div>\n

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It is not unusual for defendants to change their pleas as the legal proceedings unfold.<\/p>\n<\/div>\n<\/div>\n

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Mr Bankman-Fried, who founded FTX in 2019, was one of the most high-profile figures in the cryptocurrency industry, known for his political ties, celebrity endorsements and bailouts of other struggling firms.<\/p>\n<\/div>\n<\/div>\n

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But in November, a wave of customer withdrawals sparked by reports of shaky finances forced FTX to declare bankruptcy and reveal billions of dollars worth of missing funds. <\/p>\n<\/div>\n<\/div>\n

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In a press conference last month, federal prosecutors said the meltdown at the platform, which allowed customers to buy and sell digital tokens, stemmed from “intentional fraud”.<\/p>\n<\/div>\n<\/div>\n

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Prosecutors accused Mr Bankman-Fried of misappropriating FTX customer funds to pay debts at his other company, Alameda, and to make other investments. <\/p>\n<\/div>\n<\/div>\n

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They announced eight criminal charges, including wire fraud, money laundering and campaign finance violations. Financial regulators also brought claims against Mr Bankman-Fried.<\/p>\n<\/div>\n<\/div>\n

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Mr Bankman-Fried was arrested in December in the Bahamas, where he lived and FTX was based. <\/p>\n<\/div>\n<\/div>\n

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He was extradited to the US, where he was freed on a $250m bail package. His bail conditions required that he wear an electronic monitoring bracelet and remain largely confined to the California home of his parents, law professors at Stanford University. <\/p>\n<\/div>\n<\/div>\n

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His parents co-signed the bond, guaranteeing the money if Mr Bankman-Fried fails to appear in court. <\/p>\n<\/div>\n<\/div>\n

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In court filings on Tuesday, attorneys asked to keep the identities of the other backers secret, saying Sam Bankman-Fried’s parents had been receiving threats. Judge Kaplan granted that request.<\/p>\n<\/div>\n<\/div>\n

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More on this story<\/h2>\n<\/div>\n