Sam Bankman-Fried Pleads Not Guilty to New Indictment

Sam Bankman-Fried, the Founder of the FTX who was jailed earlier in the month, has pleaded not guilty to allegations of fraud and money laundering contained in an updated indictment unveiled by US prosecutors, according to media reports. On Tuesday, he maintained his innocence before US Magistrate Judge Sarah Netburn in the first court appearance since his bail was revoked on August 11.

Bankman-Fried Rejects Latest Indictment

In January, the former crypto billionaire had similarly pledged “not guilty” to eight counts of criminal charges, including conspiracy to commit wire and securities fraud, money laundering and conspiracy to violate campaign finance rules. In March, prosecutors expanded the charges to 13, including allegations that Bankman-Fried violated the anti-bribery provisions of the United States by bribing Chinese officials in late 2021.

However, the revised indictment contains only seven counts of charges related to the collapse of FTX, Reuters reported on Tuesday. In the new indictment, prosecutors tied in the allegation of campaign finance law violation to others, as an extradition treaty with the Bahamas prevents them from making direct allegations in that regard, according to CoinDesk.

Meanwhile, during Bankman-Fried’s court appearance on Tuesday, his lawyers claimed that the accused is being denied access to his medicine for depression and deficit hyperactive disorder at the Metropolitan Detention Centre in Brooklyn where he is being held. Furthermore, they said Bankman-Fried is being denied a vegan meal plan and “is literally now subsisting on bread and water.”

Last week, Bankman-Fried’s lawyers in a letter to US District Judge Lewis Kaplan in Manhattan complained that allowing the former CEO of FTX to only meet with his legal counsel twice a week to prepare for his October trial is “entirely inadequate.” They added that permitting the embattled crypto entrepreneur to meet his lawyer without a dedicated computer violates his rights under the Sixth Amendment of the US Constitution.

On Tuesday, the legal team raised the issue gain, noting that Bankman-Fried requires access to a laptop with internet connectivity in order to be able to examine the "millions” of documents obtained during the discovery process. Previously, the team requested that the court permit the former billionaire to meet his lawyers during all weekdays.

Bankman-Fried’s crypto empire collapsed in November last year, following a liquidation crisis and the revelation that FTX’s customers’ funds were being used to prop Alameda Research, Finance Magnates reported.

DMALINK partners with Danske; SoftBank's arm targets mega IPO; read today's news nuggets.