In October, the FTX founder SBF refused to plead guilty

Feb 01, 2023 | wjb news

On Tuesday, January 3, FTX founder SamBankman Fried denied criminal charges and will be tried in October. US District Court Judge Lewis Kaplan appeared in the US District Court in New York on Tuesday and set a trial date of October 2 for the infamous "king of cryptocurrencies". Earlier, US prosecutors said they expected to submit all the evidence of the case next month.

Legal experts said that although this decision was not unexpected, it was SBF that gained more time. SBF better understands the evidence harmful to him by the prosecutor and plans his next action. In December, Damian Williams, the Chief Prosecutor of the Southern District of New York, formally filed eight criminal charges against SBF, including: conspiracy to commit wire transfer fraud against customers; Participate in customer wire transfer fraud; Conspire to defraud the lender by wire transfer; Wire transfer fraud of participating lenders; Collusion in commodity fraud; Collusion in securities fraud; Conspiracy to launder money; Conspired to cheat the United States and violated the election financial disclosure law.

In addition, the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC), two financial regulators, announced that SBF had filed a civil lawsuit, accusing it of "securities fraud", that is, SBF privately misappropriated client funds for various expenditures and private investments of its hedge fund Alameda.

In the words of the US prosecutor, SBF is "one of the largest financial fraud cases in US history". According to a spokesman for the US prosecutor. Once the charge of Nicholas Biase from the Ministry of Justice is determined, SBF may stay in prison for decades, and face up to 115 years of imprisonment. SBF said before that he did not "intend" to cheat, but admitted that he had made mistakes.

The SBF lawyer submitted a letter on Tuesday, demanding to cover up the name of the plan to sign the bail plan, saying there was no need to disclose to the public: if the two guarantors were public, they might be reviewed by the media and might become targets of harassment, although they had no substantive connection with the case.

In December last year, FTX founder SBF bailed out $250 million. The SBF bail agreement is a "appearance bond" that promises to abide by specific restrictions while waiting for trial and to appear in court when the time is ripe. The $250 million bail is guaranteed by four people, at least one of whom is not SBF, and no one has paid any fees so far. Only the family member SBF's parents signed the $50 million personal bail, which is guaranteed by his parents' house in California, his parents' signature, and two other financial directors. Federal prosecutor Nicholas Roos This is one of the largest pre-trial bail in American history. Bail also requires him to stay with his parents, receive electronic monitoring and hand over his passport.

Roos also said that the scale of bail would "severely limit the defendant's ability to move". However, this kind of bail scheme usually does not require the amount of collateral to reach the bail amount, which means that SBF does not really need to pay 250 million dollars. Mark Cohen, his lawyer, stressed that his economic situation is deteriorating, and both the prosecution and the defense believe that his assets have shrunk significantly.

At the hearing, SBF may only have $100000. Unfortunately, he once owned a huge cryptocurrency capital empire, worth 32 billion dollars. To be sure, the net assets of mortgage loans are far less than 250 million dollars. Such a high deposit is more like a warning: if you give up insurance, the financial consequences will be very serious. This deposit also shows the seriousness of the alleged crime.


Gabriel Gorenstein, the US magistrate who approved the bail plan, believed that the risk of SBF escaping was very small, and he would not pose a danger to the public in future financial crimes. Such a high deposit is more like a warning: if you give up insurance, the financial consequences will be very serious. This deposit also shows the seriousness of the alleged crime.