The co-founder and former boss of the FTX cryptocurrency trading platform, Sam Bankman-Fried, pleaded not guilty on Tuesday to eight counts against him in federal court in New York.
Indicted in particular for fraud and criminal association, “SBF”, his nickname, had been extradited at the end of December from the Bahamas, where the headquarters of FTX was located, then released on his arrival in New York, on a bail of 250 million. dollars.
At the hearing, the negotiator and entrepreneur, in a dark suit and tie, did not speak and let his lawyer Mark Cohen speak on his behalf.
Sam Bankman-Fried’s strategy differs from that of a former FTX executive, Gary Wang, who pleaded guilty last month and is working with authorities, as does Caroline Ellison, a former head of sister platform Alameda Research. from FTX.
Political speculation and donations
Sam Bankman-Fried is suspected of having used, with collaborators, funds deposited by clients on the FTX platform to carry out speculative financial transactions through Alameda Research.
In addition to risky transactions via Alameda, he is also suspected of having invested part of this money in real estate in the Bahamas and of having made donations to Democratic political figures – always with funds from FTX clients – including Joe Biden during his presidential campaign.
Federal judge Lewis Kaplan has set October 2 as the start date for the trial of the man who was once credited with a fortune estimated at 26 billion, but who lost everything in the bankruptcy of FTX and Alameda.
The representative of the Manhattan federal prosecutor’s office, Danielle Sassoon, estimated that the trial would take four weeks, when the defendant’s lawyers mentioned two to three weeks. Judge Kaplan did not rule on this point.
Five of the eight counts against Sam Bankman-Fried each provide for a maximum sentence of twenty years in prison.
Currently under house arrest with his parents in California, he is therefore likely to spend the rest of his life in prison.
“SBF”
Since the bankruptcy of FTX on November 11, Sam Bankman-Fried has repeatedly argued publicly that he had not been at the helm of Alameda Research for many months, indirectly incriminating Caroline Ellison.
An argument disputed by the public prosecutor, who claims that “SBF” remained the main decision-maker within Alameda until FTX filed for bankruptcy.
Ms Sassoon said the office of Manhattan federal prosecutor Damian Williams planned to produce “hundreds of thousands of documents” in support of his charges within the next two weeks.
The financial derivatives regulator in the United States, the CFTC, estimates the total amount of funds diverted from FTX client accounts to be $8 billion.
Danielle Sassoon indicated, still on Tuesday, that the number of victims of the supposed actions of Sam Bankman-Fried could be “over a million”.