The founder of the collapsed cryptocurrency exchange FTX has, as expected, pleaded not guilty at a first hearing in a US court today. The US authorities, however, accuse Sam Bankman-Fried of “fraud of epic proportions” and money laundering. He also violated party donation laws with his multi-million donations for the candidacy of US President Joe Biden and his Democrats.
The actual process is likely to begin in September or October. If convicted, the 30-year-old faces up to 115 years in prison. Regardless, FTX customers want to file a class action lawsuit. On bail of $250 million, Bankman-Fried will not be in custody for the time being, but is under arrest at his parents’ house.
Two FTX top executives have pleaded guilty. After rumors of irregularities and a failed rescue by arch-rival Binance, investors withdrew money from FTX on a large scale in November 2022. The crypto exchange then applied for bankruptcy protection. According to insiders, Bankman-Fried secretly transferred $10 billion in FTX client funds to Alameda. Bankman-Fried admits mistakes, but rejects allegations of criminal acts.