FTX's Sam Bankman-Fried expected to plead not guilty during New York arraignment

Sam Bankman-Fried, founder of the defunct cryptocurrency exchange FTX, is expected to plead not guilty during his arraignment Tuesday in a Manhattan federal court on charges related to fraud.

Bankman-Fried, 30, is scheduled to appear before Judge Lewis A. Kaplan to enter his not-guilty plea and discuss the next steps before a trial, The Associated Press reported.

The Justice Department indicted Bankman-Fried last month on eight charges, including wire fraud and conspiracy. That same day, the U.S. Securities and Exchange Commission filed a complaint alleging that Bankman-Fried secretly diverted nearly $2 billion from investors to his crypto hedge fund Alameda Research, which was run by his ex-girlfriend Caroline Ellison.

He was released on $250 million bond and confined to his parents' California home late last month after he consented to extradition from the Bahamas, where he fled as FTX collapsed.

Ellison, 28, and FTX co-founder Gary Wang, 29, are free on bail after pleading guilty to fraud charges in bids for leniency.