On Tuesday, Sam Bankman-Fried, founder and former CEO of FTX, entered a not-guilty plea to eight counts of U.S. criminal charges.
Attorneys Mark Cohen and Christian Everdell represented Bankman-Fried in court on Tuesday in New York. The former millionaire, then age 30, faces many criminal allegations, including wire fraud, conspiracy to conduct money laundering, and conspiracy to abuse consumer funds. Additionally, the SEC and CFTC have filed litigation against the ex-FTX CEO on identical grounds.
Bankman-Fried was anticipated to enter a not-guilty plea prior to the release of this news. This choice might result in a protracted court struggle, and if he is found guilty on all counts, he faces a maximum of 115 years in prison. His trial is scheduled to begin on October 2, 2023.
Gary Wang, co-founder and former chief technology officer of FTX, and Caroline Ellison, CEO of Alameda Research, pleaded guilty to federal criminal charges related to the FTX collapse in late December. Along with criminal accusations, the two are also facing civil fines from the SEC and the CFTC. Given their links to Bankman-Fried, FTX, and its associated crypto hedge fund Alameda, Wang and Ellison want to assist authorities and will be essential witnesses.
After being extradited to the United States from the Bahamas last month, a U.S. court ordered Bankman-Fried freed on a $250 million bail bond. Bankman-Fried was able to stay under house arrest with his parents in Palo Alto, California, thanks to the bail package.
On Tuesday, attorneys for Bankman-Fried filed a petition with the federal court in Manhattan, asking permission to redact the identities of two people who want to help him post his multimillion-dollar bond.
Bankman-Fried is taking a risk by breaking with the precedent set by his former colleagues, who also entered guilty pleas. Given his pre-arrest publicity tour, during which he appeared everywhere from mainstream programs like "Good Morning America" to more specialized forums like crypto-focused Twitter spaces, many in the crypto community saw Bankman-Fried as arrogant.
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