The founder of the FTX cryptocurrency platform, Sam Bankman-Fried, appeared in a New York courtroom on a Tuesday and entered a not guilty plea to more than one crime alleged by United States officials following the company’s bankruptcy, a bankruptcy that local media value at billions of dollars.
The young entrepreneur, often referred to by the initials SBF, stood before the judge amid a large media presence. Eight charges were brought by the Attorney General for the Southern District of New York, including wire fraud, money laundering, and violations of campaign finance laws.
SBF was brought to New York from the Bahamas, where the company is headquartered, after extradition last month. He has remained in custody since December 22 at his family home in Palo Alto, California, after posting the highest bail in U.S. history, set at 250 million dollars.
The alleged fraudster, who faces up to 115 years in prison if convicted on all counts, is scheduled to stand trial. The court calendar indicates the trial will begin in October as directed by the judge.
The 30-year-old defendant arrived without a tie, accompanied by his mother, counsel, and several security personnel. Video clips posted on social media showed him accompanied by his team as photographers gathered outside the building.
The defense team, anticipating a lengthy process, asked the judge to keep the names of the two guarantors, other than the parents, confidential to prevent intrusion and threats. The judge granted that request.
Before the trial, prosecutor Damian Williams announced that a dedicated task force had been formed to address issues related to FTX’s collapse, including pursuing assets for victims and pursuing restitution for those harmed by the debacle, according to local press.
FTX filed for bankruptcy in November after a rush of withdrawal requests from users who questioned the company’s solvency, an event that sent shockwaves through the crypto industry.
Carolyn Ellison, the CEO of Alameda Research, which was the investment arm of FTX, and Gary Wang, a co-founder of FTX, previously admitted to wrongdoing as part of the company’s downfall.
SBF also faces fraud charges brought by U.S. securities and derivatives regulators.