FTX: Crypto tycoon Sam Bankman-Fried pleads not guilty to fraud

Former cryptocurrency tycoon Sam Bankman-Fried on Tuesday pleaded not guilty to charges of defrauding investors in his now-bankrupt FTX crypto exchange.

The 30-year-old FTX founder faces eight criminal counts, including wire fraud and money laundering conspiracy. He is accused of redirecting the deposits of FTX customers without their consent to his Alameda Research hedge fund, which financed his lavish real estate purchases and hefty political donations.

Two of his former associates have already pleaded guilty to fraud charges. Carolyn Ellison, who ran Alameda, and FTX co-founder Gary Wang are cooperating with prosecutors and may testify at trial with the hopes of getting lenient treatment.