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Former CEO Bankman-Fried Pleads Not Guilty In FTX Fraud Case

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Former CEO Bankman-Fried Pleads Not Guilty In FTX Fraud Case

(CTN NEWS) – NEW YORK – Sam Bankman-Fried, the founder of FTX, entered a not guilty plea in Manhattan federal court on Tuesday, as the judge set a possible trial date for October.

He was accused of defrauding investors and stealing customer money on his cryptocurrency trading platform.

Bankman-Fried, 30, has disputed allegations that he illegally diverted large quantities of consumer funds from FTX to pay for wealthy real estate.

Give money to politicians, and engage in dangerous trades at his cryptocurrency hedge fund trading company, Alameda Research.

Mark Cohen, Bankman-attorney, Fried’s read the verdict on behalf of his client, saying: “He pleads not guilty to all counts.”

Former FTX chief executive Sam Bankman-Fried, who faces fraud charges over the collapse of the bankrupt cryptocurrency exchange, walks from the Manhattan federal court after securing bail in New York City, U.S., December 22, 2022. REUTERS/Jeenah Moon

Judge Lewis A. Kaplan then set a potential trial date of October 2 but indicated that he might shift it up or down a day or two.

In order to make his initial appearance before Kaplan, Bankman-Fried marched past a crowd of cameras as he entered the courthouse on a rainy day. He walked out of court without speaking to the press waiting outside.

After Bankman Fried entered a not guilty plea inside the courtroom, the judge had a conversation with the attorneys about how the case would move forward into trial.

Kaplan set deadlines in April for prosecutors to reply to defense attorneys’ claims contesting the accuracy of the allegations. The motions’ debate was scheduled for May 18.

After Assistant U.S. Attorney Danielle Sassoon claimed that Bankman-Fried transferred some cryptocurrency to foreign regulators because he believed they would be more forgiving of him than U.S. authorities.

Cryptocurrency entrepreneur Sam Bankman-Fried arrives for an appearance at Manhattan federal court Tuesday, Jan. 3, 2023, in New York. Bankman-Fried will be arraigned in a Manhattan federal court Tuesday on charges of cheating investors and looting customer deposits on his cryptocurrency trading platform. (AP Photo/Craig Ruttle)

The judge added additional conditions to Bankman-Fried’s bail by prohibiting him from accessing or transferring cryptocurrency or assets of FTX or Alameda Research.

Cohen, however, contended that Bankman-Fried had not personally moved any assets and that a Bahamas court had mandated all transfers. Cohen also claimed that Bankman-Fried had not personally moved any assets.

In a letter to the judge before his appearance, Bankman-attorneys Fried’s said that in recent weeks, his parents have come under “extreme public scrutiny, abuse, and threats, including emails expressing a desire that they suffer physical harm.”

Due to this, the attorneys sought to delete the identities of two people waiting in line to sign Bankman-$250 Fried’s million personal recognizance bond from court records.

Former FTX Chief Executive Sam Bankman-Fried, who faces fraud charges over the collapse of the bankrupt cryptocurrency exchange, arrives on the day of a hearing at Manhattan federal court in New York City, U.S., January 3, 2023.

About two weeks ago, Bankman-Fried was granted electronic monitoring and released with the requirement that he wait for his trial at his parents’ Palo Alto home.

The court stated that he would make his decision later after the media has probably also raised a point or two, and urged the prosecution to react to the letter.

Gary Wang, 29, who co-founded FTX, and Carolyn Ellison, 28, who headed Alameda, have both admitted guilt to accusations of fraud and are working with the prosecution to obtain a favorable outcome. On bail, both are at liberty.

Due to worries that he may run away, their pleadings were kept a secret until Bankman-Fried was in the air following his extradition from the Bahamas, where FTX is based.

U.S. Attorney Damian Williams announced the formation of a task force comprised of senior prosecutors in his office to look into and pursue cases relating to the FTX collapse just before Bankman-arraignment.

Former FTX Chief Executive Sam Bankman-Fried, who faces fraud charges over the collapse of the bankrupt cryptocurrency exchange, walks on the day of a hearing at Manhattan federal court in New York City, U.S. January 3, 2023. REUTERS/Andrew Kelly

Fried’s task team, according to him, would also try to locate and reclaim victimized property.

Williams stated in a news statement, “The Southern District of New York is working around the clock to respond to the implosion of FTX.”

“We need all hands on deck right now. To guarantee that this important work continues, supported by all of SDNY’s resources and expertise, until justice is served, we are establishing the SDNY FTX Task Force.

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