Former cryptocurrency tycoon Sam Bankman-Fried pleaded not guilty on Tuesday to charges of defrauding investors in his now-defunct FTX cryptocurrency exchange.
The 30-year-old FTX founder is charged with eight criminal counts, including wire fraud and conspiracy to commit money laundering. He is accused of illegally redirecting FTX customers’ deposits to his Alameda Research hedge fund, which financed his lavish real estate purchases and large political contributions. Two of his former associates have already pled guilty to charges of fraud. Carolyn Ellison, the former CEO of Alameda, and Gary Wang, the co-founder of FTX, are cooperating with prosecutors and may testify at trial in the hopes of receiving lenient treatment.