Cryptocurrency Tycoon Sam Bankman-Fried Pleads Not Guilty To Slew of Charges

Sam Bankman-Fried (SBF) is the former CEO of FTX cryptocurrency exchange and he’s in very big trouble.

He is facing many charges amounting to billions in customer assets. The top Democratic donor has been close to the Biden White House and is now facing the music for what he’s done.

SBF has pleaded not guilty. He is moving to hide the identity of those who sprang his bond for him and let him get out while he waits for his trial. Did a politician get SBF out of jail?

The Crumbling of a Crypto Kingdom

SBF’s cryptocurrency kingdom seemed to be doing fine and thriving two months ago. Though it was a house of cards built on massive fraud and collapsed soon after.

After extradition from the Bahamas, SBF faced the charges against him on Tuesday. They are very serious charges and include his raiding customer accounts, laundering funds, intention to do wire fraud, and intention to do investment fraud.

There are more charges than this, adding up to eight charges in total against the California-born entrepreneur. SBF had two close associates turn on him, which helped the NY prosecutor’s office quickly put together a strong case against him.

He arrived at the courtroom in New York to so much media attention that it was hard to even get in and his mom fell on the ground after exiting her vehicle due to the massive crowd of people.

This is not looking good for SBF, to say the least.

When is the Trial?

The trial takes place on October 2 in nine months. Until that time, SBF is out on bond. Though he doesn’t want to reveal who the two individuals are who paid to get him out.

Specifically, they paid $250 for the bond which is a type of bond called a “recognizance” bond that allows him to go home and hang out at his parents’ place in California.

According to SBF’s legal team, the ID of the two people who paid his bond should be hidden because of how much media attention he’s getting.

His parents have already been getting hounded by the media. They say the further revelation of those who paid for his release will endanger them. The motion has been granted and the names of those who got him out on bond are not being revealed.

Were they Democratic politicians or insiders?

What’s Next?

At this point, the bankruptcy of FTX is underway and billions in funds are at risk. Clients want their money back.

According to prosecutors, Bahama bankers have squirreled away a lot of money that should be heading back stateside and SBF helped them hide it.

The Bahamas financial folks say they have the legal right to have kept various assets and that Chapter 11 shouldn’t apply to what they have.

SBF came back to the US on Dec. 21. Authorities are currently looking to get back money for customers who lost big on the collapse of FTX.

This article appeared in StatesmanPost and has been published here with permission.