Key Takeaways:
- Judge Lewis Kaplan has set October 2 as trial date.
- Assistant US attorney told the court that Bankman-Fried laundered money through political and charitable donations.
LAGOS (CoinChapter.com) — Sam Bankman-Fried the founder of now-defunct cryptocurrency exchange FTX has pleaded not guilty to criminal charges leveled against him following the catastrophic implosion of his crypto platform.
In detail, Bankman-Fried on January 3 pleaded not guilty in a United States court to charges that he defrauded FTX customers. He also pleaded not guilty to claims that he used Alameda Research funds to buy properties and make political donations.
Notably, the FTX founder entered the plea in a Manhattan federal court just weeks after his arrest on Dec. 13 in the Bahamas at the request of US federal prosecutors and subsequent extradition.
Bankman-Fried afterward was slammed with eight charges which included wire fraud, conspiracy to commit commodities and securities fraud, conspiracy to commit money laundering, and campaign finance violations.
Appearing in court on Tuesday, the 30-year-old came in a blue suit and spotted tie. He was also seen speaking to his lawyers all through the court proceeding. Going further Judge Lewis Kaplan who presided over the case set Oct. 2 as the tentative start date for a four-week trial.
Federal Prosecutors Say Sam Bankman-Fried Committed a ‘Wide-Ranging Fraud’
Meanwhile, US federal prosecutors have said that they would show that Sam Bankman-Fried committed a “wide-ranging fraud on [FTX] customers , investors and on lenders.”
They further declared that they will reveal how he defrauded customers through FTX’s affiliated trading arm Alameda Research. The prosecutors also told the court that they would enter hundreds of thousands of documents into evidence in the coming weeks, including those obtained from political campaigns, internet service providers, banks and former FTX employees.
Similarly, assistant US attorney Danielle Sassoon told the court that Bankman-Fried also laundered money through political donations and charitable donations. She further declared that every criminal activities which took place in FTX was done with Bankman-Fried knowledge and his direction.
Sassoon added that the US government was still obtaining warrants and issuing subpoenas to carry out extended searches. On his part, Bankman-Fried’s lawyer, Mark Cohen, slammed prosecutors over attempt to prevent him from transferring any of his assets.
The prosecutors have requested the court added a clause to Bankman-Fried’s bail agreement which would prevent him from accessing or transferring FTX or Alameda assets. This development came after reports that some cryptocurrency wallets have been drained since his arrest.
Lawyers Ask Court To Conceal Identities Of $250 Million Bail Co-Signers
In a separate development, Sam Bankman-Fried’s lawyers have also requested that the judge protect the identities of two of the defendant’s bail guarantors.
Bankman-Fried had secured bail after getting two co-signers in addition to his parents to meet his $250 million bail condition. In the filing, the lawyers cited privacy and safety concerns as reasons for requesting the concealment of identities.
However, Judge Kaplan granted the application pending any potential challenges from the media or other parties.
