Following the hearing on FTX collapse at the United States District Court in the Southern District of New York on Jan. 3, Sam Bankman-Fried (SBF) has pleaded not guilty to the eight criminal count charges against him as per a report.
SBF risks being sentenced to 115 years in prison if found guilty of the eight charges against him. The criminal charges border on wire fraud, securities fraud and violations of campaign finance laws.
However, Assistant U.S. Attorney Danielle Sassoon, one of the prosecutors in the case against SBF reportedly said that her team would provide SBF’s lawyers with documents containing evidence within the next two weeks.
It recalled that the former FTX CEO and founder SBF had been placed under house arrest at his parent’s home in California since Dec. 22 but later moved to New York for the plea hearing.
Prior to the release of the court hearing, Connell McShane had asserted that SBF would plead not guilty to the charges levelled against him.
Sam Bankman-Fried has arrived in court for his arraignment. We’re told he will plead not guilty to all the charges against him. pic.twitter.com/yakSLkOus8
— Connell McShane (@connellmcshane) January 3, 2023
During the hearing, the judge agreed to a request from SBF’s legal team to redact identifying information on individuals acting as sureties for his $250-million bail bond.
SBF Legal Tussle Continues
As at present, there is no sigh of relief for SBF as he is enmeshed in a legal tussle over mismanagement of users’ funds at FTX exchange.
While former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang have both pleaded guilty to the United States federal fraud charges, SBF insists that he has no connection to the charges against him.
Meanwhile, John Ray, the CEO of the collapsed FTX, who took over from SBF amid bankruptcy proceedings revealed to lawmakers in a December hearing that the management of the firm truly mismanaged users’ funds.
As the court continues to shed light and dig deep into the cause of the collapse of the exchange, it is important that the shoddy acts within the exchange are uncovered and all those indicted are punished accordingly.