January 27, 2023

Sam Bankman Fried pleads not guilty to fraud and other charges

These claims started to circulate after crypto experts noticed that digital accounts linked to Alameda were transferring funds. The movement of funds was visible because cryptocurrency transactions are recorded in a public ledger that anyone can access and analyze.

Ms. Sasson said in court that prosecutors are investigating the transfers. “Although we do not know if the defendant made these transfers, at one point he had access to these wallets,” she said.

Mr. Cohen denied that Mr. Bankman-Fred made the transfers.

Ms. Sasson also hinted at a court battle brewing between the new leadership of FTX, which is overseeing the US bankruptcy process, and the government of the Bahamas. It said Mr Bankman-Fried had helped foreign regulators acquire FTX assets, and that he had expressed his intention to “disrupt” the US bankruptcy process.

Since he allowed FTX to file for bankruptcy on November 11, Bankman-Fred has said repeatedly that he regrets the decision. While Ms. Sassoon was speaking, the FTX founder looked exasperated, shook his head and scribbled a message to his lawyer. Mr. Cohen told the judge that the transfer to the organizers that Ms. Sasson describes was ordered by a court in the Bahamas.

Judge Kaplan was appointed a week ago to preside over the Mr. Bankman-Fred case after the original judge, Ronnie Abrams, said she was recusing herself because the law firm Davis Polk & Wardwell, where her husband is a partner, did work for FTX in 2021. Although her husband He wasn’t involved in that representation, she said, but she was withdrawing “to avoid any potential conflict, or one appearance.”

Prosecutors have vowed to continue the investigation, potentially bringing charges against more executives in Mr. Bankman-Fried’s orbit. Damien Williams, the US Attorney for the Southern District of New York, announced on Tuesday the creation of an FTX task force of prosecutors from units of his office to investigate securities fraud; public corruption; money laundering and cross-border crimes. The task force will be led by Andrea Griswold, Senior Advisor to the US Attorney General.

Lisette Cruz Contribute to the preparation of reports.