Accused of cryptocurrency fraud, Sam Bankman-Fried pleaded not guilty during his arraignment in Manhattan federal court on Tuesday and can remain free on bail in the interim.
It was the 30-year-old prodigy’s second appearance in federal court in Manhattan since his extradition from the Bahamas.
Judge Lewis Kaplan set the Bankman-Fried trial date for October 2, 2023.
The shaggy accused fraudster was greeted by a sizable media crowd as he arrived at court together with his legal team — and mother — around 12:40 p.m.
Bankman-Fried, wearing a dark suit and backpack, followed security guards as they pushed their way through the throng of photographers at the doorway to the courthouse on Price Street in lower Manhattan.
The alleged crypto scammer is accused in an eight-pronged indictment of defrauding investors and customers of his popular foreign exchange exchange, FTX, by funneling money invested in the platform to his Alameda Research hedge fund and lavish personal spending.
The indictment also charges Bankman-Fried with conspiracy to violate campaign finance laws and conspiracy to launder money as a part of his alleged wide-ranging fraud operation.
The suspect faces as much as 115 years behind bars if convicted on all charges, the feds said.
His lawyer filed a plea of innocence with the court.
About quarter-hour before the beginning of the Bankman-Fried indictment, U.S. Attorney Damian Williams announced that his office had arrange a special “FTX task force” to take care of “FTX collapse matters” – including attempting to recuperate victims’ defrauded assets.
“Latest York’s Southern District is working across the clock to answer the FTX implosion. That is the moment when all hands are on deck,” Williams said in a statement.
“We’re launching the SDNY FTX Task Force to make sure this urgent work continues, fueled by all of SDNY’s resources and expertise, until justice is served.”
After the suspect was indicted on December 13, federal prosecutors revealed that two of Bankman-Fried’s co-conspirators pleaded guilty to fraud charges related to their role in this system and agreed to cooperate with federal investigators who’re investigating the crypto operation.
His ex-girlfriend, former Alameda CEO Caroline Ellison, 28, and FTX co-founder Gary Wang, 29, were each charged with fraud and conspiracy in secret court hearings days after Bankman-Fried was indicted.
The alleged fraudster has been living at his parents’ home in California since being released on bail.