The former head of collapsed cryptocurrency exchange FTX has officially denied allegations that he defrauded customers and investors.
Sam Bankman-Fried pleaded not guilty in a US court to allegations that he took client deposits from FTX to fund his other firm, Alameda Research, to buy real estate and make political contributions.
He was released on $250million (£208million) bail following his arrest last month.
However, if convicted, he faces more than 100 years in prison.
Two of his closest colleagues have pleaded guilty and are cooperating in the investigation that has rocked the entire cryptocurrency industry.
In interviews before his arrest, the 30-year-old ex-billionaire admitted to oversights but blamed the problems on his own “mistakes”.
It is not uncommon for defendants to change their arguments during the course of the trial.
Mr. Bankman-Fried, who founded FTX in 2019, was one of the highest profile figures in the cryptocurrency industry, known for his political connections, celebrity endorsements and bailouts of other struggling companies.
But in November, a spate of client withdrawals prompted by reports of shaky finances forced FTX to file for bankruptcy, exposing billions of dollars worth of missing funds.
In a news conference last month, federal prosecutors said the meltdown on the platform that allowed customers to buy and sell digital tokens was the result of “premeditated fraud.”
Prosecutors charged Mr Bankman-Fried with using FTX client funds to pay off debts at his other company, Alameda, and to make other investments.
They announced eight criminal charges, including wire fraud, money laundering and campaign finance violations. Financial regulators also filed lawsuits against Mr. Bankman-Fried.
Mr Bankman-Fried was arrested in December in the Bahamas, where he resided and where FTX was based.
He was extradited to the United States, where he was released on $250 million bail. His bail conditions required him to wear an electronic surveillance bracelet and remained largely confined to the California home of his parents, who were Stanford University law professors.
His parents co-signed the bond and guaranteed the money if Mr. Bankman-Fried does not appear in court.
In court filings Tuesday, attorneys called for the identities of the other supporters to be kept secret and said Sam Bankman-Fried’s parents received threats.
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