Sam Bankman-Fried Appears Before New York Court And Files A Not Guilty Plea

Less than two months ago, the world’s third-biggest centralized cryptocurrency exchange FTX collapsed. As soon as the exchange collapsed, everyone blamed its CEO.

Since then, the ex-CEO of FTX, Sam Bankman-Fried, has been accused of financial misconduct. As of this writing, he is fighting against eight different allegations.

On Tuesday, he appeared before the New York court, where he took the plea that he is not guilty.

SBF has been accused of money laundering, wire fraud, misleading investors, securities fraud, and involvement in political matters for financial gains.

The one-time billionaire has also told the court that he intended to compensate for the loss of investors, but to do so, he needs to rid of these financial allegations.

Sam Bankman-Fried appeared in his black SUV and was soon escorted to the court under intense security.

The Trial Will Be Resumed on Oct.2

As the court will return to the hearing of this case in October the second, SBF’s legal team has already forwarded the motion seeking the bail on bond for their client. The motion also had the names of the two guarantors. Moreover, the move was also approved by Kaplan.

On the other hand, the government representative Danielle Sassoon accused SBF of conspiring. Danielle also told the court that SBF asked for the help of foreign regulators regarding the transfer of the assets.

FTX’s U.S. management is trying to recover following the Chapter 11 bankruptcy process guidelines.

This is not it. Authorities in the Bahamas and FTX’s U.S. legal team have been fighting in Delaware’s bankruptcy court for weeks to seize these crypto assets worth millions of dollars.

Talking about their stance, the legal authorities of Bahama said that they are permitted to recover these assets under the jurisdiction of local laws.

Bahaman authorities added that they are privileged to refute the authenticity of the U.S. Chapter 11 bankruptcy process.

Federal Legal Team Seems to be Agreed with FTX’s U.S. Legal Team

Federal prosecutors and FTX’s U.S. attorneys are on a similar page regarding this case. The court asked Kaplan to restrict SBF’s access to the public assets, whichever are left in FTX wallets.

This Means SBF will now have no power to transfer these assets and will also be prohibited by the court from indulging in such activities till the final verdict of the court.

On December the twenty-first, 2022, SBF returned to the U.S. from the Bahamas. He straight away filed for bail to secure his release in return, he promised to pay $250 million as a bond, backed by his family property in California.

The court also directed that authorities form another task force to recover those digital assets worth millions of dollars.

Authorities will now carry out further investigations about the demise of FTX and press the matter with more pressure.

The New York court is constantly working 24/7 to investigate the claims of Damian Williams, FTX’s U.S. attorney.

Damian had also claimed SBF had tricked users into using their digital assets worth $8 billion for the investment in real estate and other projects.

The U.S. attorney of FTX also accused SBF has invested $1 billion in political activities to maneuver the political sentiment in his favor.

Regulators are eager to send SBF behind bars. In a few weeks, the regulators proposed a detailed charge sheet with 8 major financial crimes by SBF.

The Federal prosecutors have fast-paced their fact-finding upon the instructions of the CFTC and SEC.

Moreover, the legal team was escorted by two of SBF’s most trusted business partners, Caroline Ellison, the former CEO of Alameda Research. And Gary Wang, one of the co-founders of FTX along with SBF.

The new fact-finding committee will start collecting further information from the day of its initiation.

The court, for now, has been adjourned, and further hearings on the case will be commenced in October the second of the same year.

The Crypto community is hopeful that this newly directed fact-finding committee will find something conclusive against SBF.

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