The former CEO of FTX, Sam Bankman-Fried, pleaded “not guilty” to five crimes this morning. Prosecutors say he tricked officials in China and sent them about $40 million, so that he could get his hands on over a billion dollars’ worth of cryptocurrency. He then used the money to make trades, even though they ended up resulting in losses.
On Tuesday, the U.S. government accused SBF of 13 different crimes. SBF said he did not do any of them. Also, two organizations (the Securities and Exchange Commission and Commodity Futures Trading Commission) have filed civil claims against him. His lawyer is saying that ifSBF was brought here from the Bahamas in December then it’s too late to be tried for those crimes.
A man named SBF and his partners tried different legal and personal ways to get back some money they had lost but none of them worked. In order to make this money available again, SBF sent more than 40 million dollars to a private wallet. It’s against the law in the US if someone bribes a foreign official for getting business. So right now, due to these charges, a 31-year-old man named Bankman-Fried is in serious trouble as he was seen outside the courthouse looking very stressed after he was been surrounded by media.
Three people from FTX have agreed to change their plea from not guilty to guilty of something bad and will work with the court. However, the judge is still deciding if one of them, SBF, should be allowed to use any type of phone or internet while they are out on bail. As SBF was previously caught trying to hide things online and talking to witnesses without permission, the judge said that they do not want him using a lot of electronic devices.