The former head of cryptocurrency exchange platform FTX, Sam Bankman-Fried, has pleaded not guilty to new charges brought against him by a federal judge in Manhattan. Among the new charges added to the docket by Manhattan US Attorney Damian Williams’ office is corruption.
According to US authorities, Bankman-Fried forced Chinese officials to pay at least $40 million in bribes to regain access to frozen assets. Bankman-Fried transferred these funds in 2021 to obtain from Chinese authorities the release of more than $1 billion in cryptocurrencies housed in accounts in Alameda’s name.
Bankman-Fried and other executives are accused of using FTX customer accounts, without their knowledge, to fuel speculative trading by Alameda, their investment company. In January, Bankman-Fried had already pleaded not guilty to eight other charges, primarily related to the fraud he is accused of in connection with his management of FTX.
The cryptocurrency exchange platform FTX became the second-largest in the world but filed for bankruptcy in November 2022. This was due to a crisis of confidence and requests for mass withdrawals from customers after allegations against Bankman-Fried and other company executives became known.
Bankman-Fried was extradited to the United States from the Bahamas in December 2022 and faces decades in prison. His trial is scheduled to begin in October 2023 in New York. If convicted, he could face a very long prison sentence, which could have significant consequences for the world of cryptocurrencies and cryptocurrency regulation.