- Former FTX Chief Executive Officer pleaded not guilty but is open to changing his plea in the future.
- Sam Bankman-Fried also filed an application to seal the identities of the entities that signed his $250 million bail.
- The crypto market is still reeling from its $255 billion crash that was triggered by the collapse of FTX.
FTX collapsed and filed for bankruptcy almost two months ago, but the impact of the fallout continues to suppress the crypto market. To add to that, the co-founder of the bankrupt exchange seems to be extending this influence.
FTX’s Sam Bankman-Fried denies wrongdoings
FTX saga took an expected turn today after the former Chief Executive Officer (CEO) of the company, Sam Bankman-Fried, pleaded not guilty in court on Tuesday. The ex-CEO is facing a sleuth of charges, including wire fraud and campaign finance, which are born out of the comingling of customer funds by FTX’s sister company Alameda Research.
Since its bankruptcy in November, FTX is managed by its new CEO, John Ray, who is overseeing its liquidation. Bankman-Fried, on the other hand, was arrested by the Bahamian authorities and deported back to the United States, awaiting charges by the SEC and CFTC.
However, following Sam Bankman-Fried’s “not guilty” plea, the case will go to court trials in early October, according to presiding judge Lewis Kaplan. Bankman-Fried also has the next seven months to change his plea, the chances of which seem slim at the moment.
On the same day, Sam Bankman-Fried’s lawyers also requested the court to seal the identities of the FTX founder’s bail co-signers. Along with Bankman-Fried’s parents, two other entities signed the $250 million bail last month.
Crypto market’s suffering continues
FTX collapsing was a trigger event for not just its native token, FTT but also for the rest of the cryptocurrencies. This led to the $255 billion crash, which resulted in the crypto market capitalization declining from $1 trillion to $754 billion.
Total crypto market capitalization
The market has been unable to successfully recover from the crash due to a lack of progress in the past two months, with the market capitalization increasing by only $10 billion. To initiate a recovery, the market capitalization needs to reach $800 billion, but this seems unlikely to happen given the continued fear in the market.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin: Retraces to around $75,000 after hitting new all-time high
Bitcoin (BTC) edges slightly down on Thursday and trades at around $74,900 after hitting a new all-time high (ATH) of $76,400 on Wednesday, buoyed by the victory of the crypto-friendly candidate Donald Trump in the US presidential election.
Ethereum price jump spurs most significant ETF inflows in six weeks
After a positive momentum in crypto markets following the outcome of the US presidential election, spot Ether exchange-traded funds (ETFs) in the United States saw their highest inflows in six weeks.
Top trending meme coins PEPE, BONK, and FLOKI achieve double-digit gains following Trump’s victory
The prices of top trending meme coins Pepe (PEPE), Bonk (BONK) and FLOKI (FLOKI) experienced double-digit gains following Trump’s victory on Wednesday. The technical outlook suggests that the three meme coins hover around key levels, and the breakout could push these coins higher.
SUI hits new all-time high fueled by Trump election win
Sui (SUI) edges down on Thursday and trades at around $2.24 after hitting a new all-time high (ATH) of $2.38 earlier in the day, buoyed by the victory of a crypto-friendly candidate, Donald Trump, in the US presidential election.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.