Sam Bankman-Fried, the founder of the now-bankrupt FTX cryptocurrency exchange, pleaded not guilty to a new set of criminal charges when he walked into Manhattan Federal Court.
The 31-year-old was indicted earlier in the week with conspiracy to violate campaign finance laws and the payment of a $40 million bribe to a Chinese official in an attempt to unfreeze over $1 billion worth of cryptocurrency.
The crypto mogul had already pleaded not guilty to eight counts of fraud and conspiracy to defraud investors in December.
A person familiar with the case confirmed that “Sam Bankman-Fried is pleading not guilty,” per XM. The new charges add to the mounting pressure on ex crypto giant, who faces decades in prison if convicted at the trial set for early October.
According to the indictment, filed by the U.S. Attorney’s office in Manhattan in late February, Bankman-Fried had commingled the funds between FTX and his hedge fund, Alameda Research – leading to large withdrawals and the ultimate collapse of the exchange.
In a post-arrest blog post, the accused acknowledged mismanagement of risk at FTX but maintained that he had not stolen any funds.
Prosecutors allege that when attempts to release the frozen cryptocurrency accounts of Alameda Research were fruitless, Bankman-Fried authorized a transfer of tens of millions of dollars worth of cryptocurrency as an illegal bribe to Chinese officials.
Bankman-Fried reportedly faces civil charges from the Securities and Exchange Commission and Commodity Futures Trading Commission.
The new indictment also charges him with 13 counts of violating the Foreign Corrupt Practices Act, which makes it a federal crime for U.S. citizens to bribe foreign government officials.
The Department of Justice has yet to announce whether a plea deal is on the table or if Bankman-Fried will take his case to trial. Either way, this scandal has caused millions in losses and could prove to be one of the most significant cases in the field of cryptocurrency.
The post FTX Founder Sam Bankman-Fried Pleads Not Guilty To $40 Million Bribery Charges In Manhattan Federal Court appeared first on Knewz.
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Author: Dave Malyon
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