Sam Bankman-Fried, the founder and former CEO of FTX, pleaded not guilty to all charges on Tuesday.
Bankman- Fried appeared before a judge in New York City on Tuesday with his lawyers. There are a number of criminal charges against the 30-year-old former billionaire. The former FTX CEO is being sued by the SEC.
Bankman- Fried was expected to plead not guilty. He could face up to 115 years in jail if he is found guilty of all charges. His trial will take place on October 2,23.
FTX co-founder and former CTO Gary Wang and Alameda Research CEOCaroline Ellison pleaded guilty to federal criminal charges in relation to the FTX collapse. Along with the criminal charges, the two are facing civil penalties. Wang and Ellison have close ties to both Bankman- Fried and FTX and will be major witnesses.
Bankman-Fried was released on bail after he was extradited from the Bahamas. Bankman- Fried was placed under house arrest at his parents home in Palo Alto, California.
Bankman- Fried's lawyers filed a letter to the Manhattan federal court on Tuesday seeking redactions of the names of two individuals who intend to help secure his multimillion dollar bail in an attempt to protect them from public attention.
In recent weeks his parents have become the target of intense media scrutiny, harassment, and threats. Mr. Bankman- Fried's parents have received a lot of threatening correspondence, including communications expressing a desire that they suffer physical harm.
There is a serious cause for concern for other people involved in the bond.
John J. Ray III replaced Bankman- Fried as CEO of FTX after the exchange filed for Chapter 11 reorganization.
FTX's collapse was the focus of the first hearing of the U.S. House Financial Services Committee. Bankman-Fried was unable to testify after being arrested in the Bahamas and Ray was the only witness.
The four-hour hearing addressed a number of aspects in the situation from the extent to which customer funds were misuse to internal operations.
Ray said at the time that there were no internal controls and no separateness.
Ray said that there was no board that oversaw FTX. FTX didn't have an accounting or human resources department. There was a legal department and employees with compliance titles, but no department for them to work in.
Bankman- Fried diverts from his former colleagues who plead guilty as a risky move. Bankman-Fried went on a media tour before he was arrested and many in the community think he was arrogant.
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