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Cryptocurrency: FTX founder pleads not guilty – The Economics

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The 30-year-old businessman, who is out on bail, testified this Tuesday in Manhattan federal court before Judge Louis Kaplan.

During the hearing, the trader and businessman kept silent, allowing his attorney, Mark Cohen, to speak. The strategy differs from that of Gary Wang, a former director of FTX who pleaded guilty last month and is cooperating with authorities, as well as former Alameda Research CEO Caroline Ellison.

FTX and investment firm Alameda Research go bankrupt in 2022. The business was previously valued at $32 billion.

It is suspected that Bankman-Fried, along with other collaborators, used resources deposited on the platform by clients to carry out speculative operations through Alameda Research.

It is also suspected that the businessman invested part of this money in real estate in the Bahamas and made donations to Democratic politicians – always with client money – including Joe Biden, during the presidential campaign.

The businessman faces eight counts, including conspiracy, wire fraud, money laundering and election funding law violations.

Bankman-Fried pleaded not guilty to eight counts, five of which carry a maximum penalty of 20 years in prison.

Judge Kaplan has set October 2 as the tentative date for the start of the businessman’s trial. Manhattan US Attorney Danielle Sasson estimated the process would take four weeks, while defense attorneys said it would take two to three weeks. The judge did not rule on this point.

Bankman-Fried was released on $250 million bail last month after being extradited from the Bahamas, home of FTX.

The businessman recently stated that he only has $100,000 left in the bank and will have to live in his parents’ home in Palo Alto, California, subject to an electronic bracelet.

On Tuesday, the attorney general indicated that the number of people affected by FTX could reach more than 1 million.

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