The founder of FTX, a collapsed crypto platform, Sam Bankman-Fried, entered a not-guilty plea to charges of fraud and money laundering on Tuesday in a New York court. He is accused of misusing customer funds for personal and political purposes in a new indictment.
The indictment adds a campaign finance charge to the previous allegations from last December, which the prosecutors could not bring separately due to treaty issues with the Bahamas. Bankman-Fried’s lawyer complained that his client was not getting adequate vegan food in prison and was surviving on bread and water during the hearing.
The hearing for Sam Bankman-Fried, the founder of FTX, a failed crypto platform, was conducted by Magistrate Judge Sarah Neburn on Tuesday. She asked Bankman-Fried if he wanted to hear the entire indictment, which he declined, and then asked for his plea.
Bankman-Fried Legal Drama Continues to Unfold
He said he was not guilty of fraud and money laundering charges related to the FTX collapse last year. Bankman-Fried appeared in court for the first time since his bail was revoked earlier this month. He wore a tan uniform and looked at his mother, Barbara Fried, who was in the audience and smiled briefly.
Judge Netburn: You are charged in seven counts [Count 8, campaign finance charges, is gone] How do you plead?
Bankman-Fried: Not guilty.
AUSA: We'd like to exclude time until the trial, October 3.
Mark Cohen for SBF: We'd like to raise two topics regarding the MDC— Inner City Press (@innercitypress) August 22, 2023
He then went to the table where his lawyers were sitting, accompanied by a U.S. Marshal. His father, Joseph Bankman, was absent from this hearing, unlike the previous one on Aug. 11. Bankman-Fried and his lawyers were talking intensely before the hearing started.
As Bankman-Fried appeared in court on Tuesday to plead not guilty to the charges of fraud and money laundering related to his failed FTX venture, his lawyers asked for him to be allowed to consult with them and use laptops with internet access at the U.S. Attorney’s office on weekdays.
Judge Kaplan, who is presiding over the case, granted him permission to do so until 3:00 p.m. EDT today but did not comment on the wider request.
The issue of Bankman-Fried’s access to evidence and counsel was raised again by his lawyer, Christian Everdell, during the hearing on Tuesday. He claimed that his client’s right to a fair trial under the Sixth Amendment was being violated. Everdell said that Bankman-Fried had been unable to review the discovery materials since he was detained.
The court received a request from the prosecutors to compel Bankman-Fried’s lawyers to disclose more details about his planned defense strategy based on legal advice, including what his counsel allegedly advised him.
