Jailed FTX Founder Bankman-Fried Pleads Not Guilty to New Indictment

CRYPTOCURRENCY - NEW YORK. Sam Bankman-Fried, founder of the now-bankrupt cryptocurrency exchange FTX, pleaded not guilty on Tuesday to a new indictment alleging fraud and conspiracy charges.

Bankman-Fried entered his plea in Manhattan federal court, his first appearance there since a U.S. judge sent him to jail. He wore a beige-colored prison uniform with the sleeves slightly rolled up. His mother, Stanford Law School professor Barbara Fried, looked on from the courtroom audience.

Bankman-Fried, 31, has been behind bars since Aug. 11, when U.S. District Judge Lewis Kaplan revoked his bail for allegedly tampering with witnesses at least twice.

The former billionaire is being housed at Brooklyn's Metropolitan Detention Center, which has gained infamy for conditions that public defenders have called "inhumane."

His lawyers have asked Kaplan to let him out five days a week to review evidence at the Manhattan courthouse, saying he would otherwise be unable to prepare adequately for his scheduled Oct. 2 trial. Kaplan is allowing Bankman-Fried to meet with his lawyers in the courthouse with an internet-enabled laptop for around 6-1/2 hours on Tuesday.

Read Also: Sam Bankman-Fried Pleads Not Guilty in FTX Fraud Case; October Trial Set

Bankman-Fried was jailed after sharing the personal writings of his former romantic partner and colleague, Caroline Ellison, with a New York Times reporter. Ellison, who had been chief executive of Bankman-Fried's hedge fund Alameda Research, is one of three former members of his inner circle who have pleaded guilty and agreed to testify against him at trial.

Prosecutors say Bankman-Fried stole billions of dollars in FTX customer funds to plug losses at Alameda, purchase lavish real estate, and donate more than $100 million to U.S. political campaigns in a bid to promote crypto-friendly legislation.

Bankman-Fried has acknowledged risk management failures at FTX but denied stealing funds.

His lawyers said he may assert an advice-of-counsel defense at trial, prosecutors said in court papers on Friday.

The defendant has previously said advice from Silicon Valley law firm Fenwick & West on conduct such as FTX's use of disappearing messages led him to believe his activity was legal.

Fenwick & West declined to comment.