The founder of FTX, Sam Bankman-Fried (SBF), has entered a plea of not guilty in a Manhattan federal court to seven criminal charges in a new indictment. This comes after his bond was revoked earlier this month, leading to his imprisonment. SBF is expected to spend the days until his trial in MDC Brooklyn, a notorious jail in New York City known for its unpleasant living conditions. However, SBF’s lawyer claims that his client is being denied his vegan diet and medication requirements, surviving on “bread and water” instead.
SBF has once again pleaded not guilty to several fraud and conspiracy charges, denying allegations that he was the main culprit behind the collapse of FTX and the resulting investor losses. While acknowledging inadequate risk management at FTX, SBF denies draining clients’ funds. The new indictment does not include charges of conspiring to violate US campaign finance laws, as the authorities of the Bahamas objected to that matter. However, American prosecutors are determined to prove that SBF donated approximately $100 million to US political campaigns as part of his alleged fraudulent scheme.
SBF has maintained his not guilty plea since January. In contrast, Caroline Ellison, former CEO of Alameda Research and SBF’s ex-lover, and Gary Wang, former executive at FTX, have admitted their roles in the November meltdown and are set to testify against Bankman-Fried in the trial scheduled for October 2.
SBF’s prison experience has gone from bad to worse. After sharing private information from Ellison’s diary, he was placed in MDC Brooklyn, a prison facility known for its poor conditions, including contaminated food and water, overflowing toilets, corruption, and violence. SBF’s lawyer claims that the prison has not honored his client’s food requirements, forcing him to subsist on bread and water. Additionally, the jail has allegedly failed to provide him with the necessary medication to treat attention deficit hyperactive disorder and depression.
These factors could potentially hinder SBF’s ability to properly prepare for his upcoming trial. If found guilty on all charges, the former FTX CEO could face a sentence of up to 115 years in prison.
