Bankman-Fried set to enter initial not guilty plea in FTX fraud case - source

NEW YORK (Reuters) - Sam Bankman-Fried is expected on Tuesday to enter an initial plea of not guilty to criminal charges that he cheated investors and looted billions of dollars at his now-bankrupt FTX cryptocurrency exchange, according to a source familiar with the matter.

Bankman-Fried is accused of illegally using FTX customer deposits to support his Alameda Research hedge fund, buy real estate and make millions of dollars in political contributions.

He is scheduled to appear at 2 p.m. EST (1900 GMT) on Tuesday before U.S. District Judge Lewis Kaplan in Manhattan to enter a plea.

A lawyer for Bankman-Fried did not immediately reply to a request for comment.

Bankman-Fried has been free on $250 million bond following his extradition last month from the Bahamas, where he lived and where the exchange was based.

Since his release, Bankman-Fried has been subject to electronic monitoring and required to live with his parents, both professors at Stanford Law School in California.

The Massachusetts Institute of Technology graduate has been charged with two counts of wire fraud and six conspiracy counts, including to launder money and commit campaign finance violations. He could face up to 115 years in prison if convicted.

Bankman-Fried has admitted to making mistakes running FTX but said he did not believe he was criminally liable.

(Reporting by Jack Queen; Editing by Noeleen Walder and Daniel Wallis)

By Jack Queen