Just previously, Sam Bankman-Fried was arrested on criminal charges after the development of investigations of the FTX collapse. He spent days in a Bahamian jail where he lived a life of luxury. However, it didn’t last long as he was later on shifted to the US. Sam Bankman-Fried has pleaded not guilty to criminal charges of him defrauding investors that caused billions of dollars’ worth of losses. Considering how large the sum is, prosecutors dubbed this an epic fraud.
Sam Bankman-Fried made his way to the courtroom on a rainy day through a tsunami of cameras. Bankman-Fried stayed quiet as his attorney, Mark Cohen, announced his plea. The US Attorney’s Office for the Southern District of New York charged Sam Bankman-Fried on 8 different charges. These charges were about money laundering, fraud, and many others. Similarly, Bankman-Fried even had role in violating political contribution laws. He was actively involved in donating to both committees and candidates in New York under a different alias. Apart from this, the authorities claimed that Sam Bankman-Fried scammed customers by using their assets in order to pay debts of FTX.
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
Bankman-Fried including a number of top executives, were also involved in falsifying financial statements. These were eventually used to defraud lenders. The government holds a series of evidences against Bankman-Fried. The prosecutors would soon turn over the pile of documents in the upcoming weeks for defence. The trial is expected to last over a course of almost four weeks.
What’s Next for Sam Bankman-Fried?
Sam Bankman-Fried spent a great chunk of 2022 living in the Bahamas. As soon as it was announced that US authorities would press charges against SBF, Bahamian authorities extradited him. Furthermore, Securities regulators in the Bahamas were also able to seize crypto assets worth approximately $3.5 billion for safekeeping.
A prolonged legal battle is expected as of now. The prosecutors are in a dire need to prove that Sam Bankman-Fried scammed the customers deliberately. The co-founder oof FTX, Gary Wang, and former Alameda CEO, Carolyn Ellison, have already pleaded guilty to fraud charges. However, both Wang and Ellison are expected to serve as government witnesses during Bankman-Fried’s trial. The result of this trial is still a debatable topic. However, all we can do is wait and see how the events might unfold over the next few weeks.