Sam Bankman-Fried pleads not responsible to new federal expenses

Sam Bankman-Fried, the founding father of failed cryptocurrency buying and selling platform FTX, pleaded not responsible to 5 new federal expenses of fraud and conspiracy, together with one rely of conspiring to bribe Chinese language authorities officers.

An lawyer for Bankman-Fried entered the plea on his behalf of his shopper, who was seated beside him within the New York courtroom Thursday. He beforehand pleaded not responsible to eight different expenses stemming from what prosecutors have described as one of many greatest monetary frauds in US historical past.

Earlier this week, federal prosecutors tacked on a thirteenth felony cost towards Bankman-Fried, accusing him of bribing “a number of” Chinese language authorities officers with $40 million price of cryptocurrency.

Within the newest indictment, prosecutors alleged that Bankman-Fried sought to repay Chinese language officers to unfreeze accounts belonging to his hedge fund, Alameda Analysis. The accounts, which the Chinese language authorities had frozen, held greater than $1 billion price of digital belongings, prosecutors say.

The accounts have been launched after the cost was transferred in from Alameda’s important buying and selling account to a non-public cryptocurrency pockets, in response to the indictment.

Prosecutors allege that Bankman-Fried stole FTX buyer deposits to finance dangerous bets at his hedge fund, Alameda Analysis, and to funnel contributions to American politicians.

FTX had been one of many buzziest and largest platforms for buying and selling digital belongings earlier than it collapsed into chapter 11 in November.

The 31-year-old Bankman-Fried is out of jail on a $250 million bond, awaiting trial beneath home arrest at his dad and mom’ dwelling in Palo Alto, California. Bankman-Fried, whose metoric rise and sudden downfall late final yr shocked the crypto neighborhood, beforehand acknowledged mishandling his enterprise however has denied participating in fraud.

Three of Bankman-Fried’s former enterprise companions — Gary Wang, Caroline Ellison and Nishad Singh — have pleaded responsible to quite a few expenses and are cooperating with investigators.

If convicted on all counts, he might face greater than 155 years in jail. A trial has been scheduled for October.

— CNN’s Allison Morrow contributed reporting.