The collapse of FTX and its founder, Sam Bankman-Fried, has had notable implications for the cryptocurrency industry. The collapse of the billion-dollar empire definitely had repercussions for the whole market.
In one of the most recent updates regarding the case, Fried entered a plea of not guilty on Tuesday in response to an expanded indictment from federal prosecutors.
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Sam Bankman-Fried pleads not guilty
The new charges allege that Mr. Bankman-Fried misused FTX customer deposits for unauthorized purposes, including purchasing real estate and funding political campaigns.
Fried’s arraignment comes after his arrest on initial fraud and conspiracy charges related to FTX’s collapse. Prosecutors have now incorporated an additional count of illegal campaign finance into the indictment.
The former billionaire appeared in a New York federal court to formally respond to the new charges. Through his attorneys, Mr. Bankman-Fried asserted his innocence of all alleged wrongdoing that contributed to FTX’s implosion last year.
The fate of FTX’s former CEO remains uncertain as his case proceeds toward trial. Tuesday’s not-guilty plea marks the latest development in an ongoing legal saga for Sam Bankman-Fried stemming from the spectacular failure of what was once one of the world’s largest crypto exchanges.