Get All Access for $5/mo

Sam Bankman-Fried Pleads Not Guilty To Fraud Charges The co-founder of now-disgraced cryptocurrency companies FTX Group and Alameda Research appeared in court in Manhattan on Tuesday.

By Gabrielle Bienasz

Opinions expressed by Entrepreneur contributors are their own.

Michael M. Santiago / Staff I Getty Images
Sam Bankman-Fried arriving to his hearing on Tuesday.

Sam Bankman-Fried, who once helmed a crypto empire and represented an industry, pleaded not guilty to eight criminal charges, including conspiracy to commit wire fraud and money laundering, in a U.S. District Court in Manhattan court on Tuesday.

Bankman-Fried was a self-styled "elder statesman" of the crypto universe after founding Alameda Research in 2017, succeeding with tactics including financial arbitrage. He later created the crypto exchange FTX in 2019.

Related: Who Is FTX Founder Sam Bankman-Fried and What Did He Do? Everything You Need to Know About the Disgraced Crypto King

The Securities and Exchange Commission has contended that FTX was lending out customer money to Alameda, which, broadly speaking is illegal, as the company was trading customer funds without their consent. The current CEO of the company, John J. Ray III, called it "really just old-fashioned embezzlement" in a Congressional hearing in mid-December.

Bankman-Fried faced eight criminal charges in the District Court, including wire fraud, all of which he pleaded not guilty to today.

Reuters reported last week he was expected to enter that plea.

He was also filmed entering the courthouse on Tuesday.

Bankman-Fried was arrested in the Bahamas before being extradited to the U.S. in late December. The SEC has also authorized charges against him.

Two fellow executives, Caroline Ellison and Gary Wang, pleaded guilty to fraud-related charges on December 21 and agreed to cooperate on the case, said the U.S. Attorney for the Southern District of New York, Damian Williams.

"This investigation is very much ongoing," Williams said at the time.

He also said it would be far from the last announcement on the case.

"If you participated in misconduct at FTX or Alameda, now is the time to get ahead of fit. We are moving quickly, and our patience is not eternal," he added.
Gabrielle Bienasz is a staff writer at Entrepreneur. She previously worked at Insider and Inc. Magazine. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Science & Technology

No More ChatGPT? Here's Why Small Language Models Are Stealing the AI Spotlight

Entrepreneurs can leverage this growing tech to create innovative, efficient and targeted AI solutions.

Franchise

Earn $680K a Year with This Wedding Industry Franchise

Wed Society stands out as a unique player in the world of home-based franchises, catering specifically to the recession-resistant wedding industry with franchisees generating an average annual revenue of over $680,000.

Marketing

10 Effective Growth Marketing Hacks and Strategies for Your Startup

Working at a startup can feel like building a plane while you're trying to take off. Use these ten marketing tips to effectively grow and sustain your startup.

Productivity

My Employees Taught Me These 5 Lessons on Productivity

Entrepreneurs should focus on understanding and catering to individual work patterns and needs rather than enforcing one-size-fits-all productivity methods.