FTX founder Sam Bankman-Fried has arrived at Manhattan federal court to answer the charges that he defrauded investors out of $1.8billion.
With his trademark wild hair flopping in the breeze, the disgraced crypto wunderkind, 30, was dressed simply for court in a navy suit, white shirt, and blue polka-dot tie.
Bankman-Fried also toted a backpack as he entered court flanked by his attorney, Mark S. Cohen, as well as burly members of an apparent private security detail.
His arraignment is set before US District Judge Lewis Kaplan for 2pm on Tuesday, where he is expected to plead not guilty to eight counts of fraud and conspiracy.
Meanwhile, Bankman-Fried’s attorneys said Tuesday his law professor parents have ‘received a steady stream of threatening correspondence’ and asked the court to redact the names of two additional co-signers on his $250 million bond.
Sam Bankman-Fried (center) arrives at Manhattan Federal Court in Manhattan on Tuesday to answer the charges that he defrauded investors out of $1.8billion
Former FTX chief executive Sam Bankman-Fried arrives to enter a plea before US District Judge Lewis Kaplan in the Manhattan federal court on Tuesday
In an indictment last month, US Attorney Damian Williams alleged that Bankman-Fried scammed investors and illegally used FTX customer deposits to prop up his Alameda Research hedge fund, buy real estate and splash out millions in political donations.
Bankman-Fried, whose crypto exchange FTX collapsed in bankruptcy in November, has publicly denied knowingly committing fraud, instead blaming sloppy accounting.
He plans to enter a plea of not guilty to all charges, a source familiar with the matter told Reuters. His attorney did not immediately respond to a request for comment from DailyMail.com.
Following his arrest and extradition last month, Bankman-Fried, 30, has been free on bond and living under electronic monitoring at the Palo Alto, California, home of his parents, both Stanford University law professors.
In their latest court filing, Bankman-Fried’s attorneys asked Judge Kaplan to seal the names of two co-signers on his $250million personal recognizance bond.
Bankman-Fried, who faces fraud charges over the collapse of the bankrupt cryptocurrency exchange, walks in ahead of a hearing at Manhattan federal court
Bankman-Fried will appear for arraignment before US District Judge Lewis Kaplan in a hearing at 2pm on Tuesday, where he is expected to plead not guilty
Bankman-Fried, flanked by apparent private security guards, enters court on Tuesday
Bankman-Fried is seen with his lawyer Mark S. Cohen (right) and security guards as he arrives at federal court in Manhattan on Tuesday
The bail conditions imposed by the court required the accused scammer’s parents, Joseph Bankman and Barbara Fried, to co-sign his bond, but also required two additional sureties sign separate bonds in lesser amounts.
Now, Bankman-Fried’s attorney Mark S. Cohen says in the filing that the parents have become the target of threats and harassment, and requests that the additional co-signers be allowed to remain anonymous.
‘Among other things, Mr. Bankman-Fried’s parents have received a steady stream of threatening correspondence, including communications expressing a desire that they suffer physical harm,’ Cohen wrote.
The attorney added that there ‘is serious cause for concern that the two additional sureties would face similar intrusions on their privacy as well as threats and harassment’ if their identities are revealed.
Bankman-Fried will answer the charges laid out in an indictment signed by Damian Williams (above), the US attorney for the Southern District of New York
People walk past the New York federal courthouse last month. FTX founder Sam Bankman-Fried is due to appear for a hearing on Tuesday
Bankman-Fried, 30, has been free on bond and living under electronic monitoring at the Palo Alto, California, home of his parents, both Stanford University law professors
The motion requests that Kaplan ‘issue an order directing that the names and identifying information of the two remaining sureties be redacted on their bonds and not be publicly disclosed by the Government.’
Bankman-Fried is charged with two counts of wire fraud and six conspiracy counts, including to launder money and commit campaign finance violations.
He could face up to 115 years in prison if convicted.
Earlier, two of Bankman-Fried’s top lieutenants pleaded guilty to fraud charges and agreed to cooperate with federal prosecutors, in a potentially significant blow to his defense.
Carolyn Ellison, 28, who ran Alameda, and Gary Wang, 29, who co-founded FTX, pleaded guilty to charges including wire fraud, securities fraud and commodities fraud.
Carolyn Ellison, 28, who ran Alameda, and Gary Wang, 29, who co-founded FTX, previously pleaded guilty and agreed to cooperate with prosecutors in a bid for leniency
Both are free on bail and cooperating with prosecutors in a bid for leniency ahead of sentencing.
Their pleas were kept secret until Bankman-Fried was in the air after his extradition from the Bahamas, where FTX is based, due to fears that he might flee.
Ellison and Wang both face decades in prison at their sentencings.
FTX, once valued as high as $32billion, filed for bankruptcy protection on November 11 after alleged misappropriation of client funds left a multi-billion hole in the crypto exchange’s books.
The collapse of FTX, which had been the second-largest crypto exchange in the world, left creditors seeking to recoup billions in claimed losses.
Prior to his December 12 arrest in the Bahamas, SBF acknowledged risk-management failures at FTX, but maintained he does not believe he is criminally liable.