FTX founder and former CEO Sam Bankman-Fried aka SBF pleaded not guilty to charges related to the “fraud of epic proportions.” The judge set an October trial date as both sides prepare to sift through mountains of evidence. Meanwhile, U.S. prosecutors are seizing 56 million shares of Robinhood, worth about $465 million, tied to SBF. He purchased about 7.42% of Robinhood‘s stock through Emergent Fidelity Technologies Ltd, using funds borrowed from Alameda Research.
SBF said he owned 90% of Emergent Fidelity Technologies, and Gary Wang, a co-founder of FTX, owned 10%. Wang and Alameda Research co-CEO Caroline Ellison pleaded guilty to fraud charges from the FTX collapse and are cooperating with prosecutors.
U.S. District Judge Lewis Kaplan set an Oct. 2 trial date. Although SBF pleaded not guilty he may change his plea at any time. His lawyers may negotiate with prosecutors over a possible plea deal.
