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Disgraced FTX founder Sam Bankman-Fried (SBF) pleaded not guilty to all federal indictments filed against him, including bribery charges that were made public last week, at a hearing on March 30. CNBC report.
SBF attorney Mark Cohen told reporters that he intends to file a motion to reduce some of the charges, arguing that SBF cannot be brought to justice for charges imposed after extradition. He said he intended to ask the court not to bring his client to trial on all counts of action.
It is unclear whether the court will approve the motion.
SBF’s trial is scheduled to begin in October. He is also facing civil lawsuits filed by the SEC and CFTC.
federal fee
Prosecutors in total 13 federal indictments vs SBF.
The charges include securities fraud. wire fraud; multiple conspiracy charges related to wire transfer fraud against Alameda lenders and his FTX customers; money laundering; operating an unlicensed money transfer business; Bank Fraud, Illegal Campaign Contributions, and Bribery of Foreign Officials.
Three indictments have been filed, most recently focused on bribing Chinese officials to unfreeze Alameda Research accounts.
Prosecutors say Chinese authorities have frozen Alameda Research accounts containing nearly $1 billion in cryptocurrency that SBF and his associates have tried to gain access to in various “personal and legal” ways without success. claimed to have done so.
SBF eventually paid $40 million in bribes to unfreeze the accounts, and Alameda used those funds to continue its questionable investments and operations, according to court filings.
Additionally, SBF and his associates have been charged with violating federal campaign finance laws by donating millions of dollars to political campaigns using corporate funds through straw donors.
FTX Collapse
Cryptocurrency exchange FTX and its sister company Alameda Research have collapsed after a major bank run due to balance sheet concerns. Subsequent investigations revealed that the concerns were legitimate and that, under the leadership of SBF and its associates, both companies had spent their clients’ funds at their disposal.
The implosion cost FTX customers about $10 billion in direct losses, with no clear path to recovery so far.
SBF was subsequently indicted and arrested in the Bahamas, home of the exchange. He eventually agreed to his extradition and returned to the United States in December 2022. After arriving in the United States, he secured his bail and is currently awaiting bail trial at his parents’ California home, where he is currently under house arrest.
