Sam Bankman-Fried, released on $250 million bail (235.5 million euros), faces up to 115 years in prison.
Sam Bankman-Fried (SBF), founder of bankrupt cryptocurrency platform FTX, pleaded not guilty to cryptocurrency fraud on Tuesday, launching a high-stakes legal battle as he faces up to 115 years in prison. On Tuesday, the SBF, released on $250 million (€235.5 million) bail, appeared in federal court in New York. The judge has set a trial date for October 2, 2023.
Thus, SBF is up against two former business partners: Gary Wang, co-founder of FTX, and Caroline Ellison, former CEO of Alameda Research, also founded by SBF. They both pleaded guilty to fraud and are cooperating with prosecutors.
Based in the Bahamas, FTX has earned a reputation as one of the most stable and reliable players in the crypto space. FTX went bankrupt last November and since then, more than a million lenders have been trying to recover their money that could be lost forever.
On November 8, Binance, the world’s largest cryptocurrency exchange, announced that it wants to acquire FTX, which is experiencing a liquidity crisis, which led to the collapse of the FTX FTT token. Binance exited the next day. SBF then lost his billionaire status, dropping 94% in just one day.