Bankman-Fried's Bid to Dismiss Criminal Charges Over FTX's Collapse Denied: Reuters
On Tuesday, a federal judge dismissed Sam Bankman-Fried's attempt to throw out most of the U.S. government's criminal case, which accuses him, as the founder of FTX cryptocurrency exchange, of orchestrating a multibillion-dollar fraud.
Because Bitcoin
June 27, 2023
Reuters reported that a federal judge denied Sam Bankman-Fried's attempt to dismiss a significant portion of the U.S. government's criminal case against him. Bankman-Fried, the founder of the FTX cryptocurrency exchange, is accused of orchestrating a fraud scheme worth billions of dollars. U.S. District Judge Lewis Kaplan's decision means that Bankman-Fried, a 31-year-old former billionaire, will face trial on October 2.
Bankman-Fried maintains his innocence, denying the theft of funds while admitting that FTX had insufficient risk management protocols. In May, Bankman-Fried requested the dismissal of 11 out of the 13 charges of fraud and conspiracy against him.
He argued that certain charges relied on a fraud theory invalidated by a recent U.S. Supreme Court ruling. However, the judge agreed with prosecutors, stating that the theory, known as the right to control, did not apply to Bankman-Fried. Judge Kaplan pointed out that Bankman-Fried's claim that the indictment failed to allege any economic loss to FTX customers was factually incorrect, as the misappropriated funds clearly qualified as property.
Bankman-Fried's spokesperson declined to comment. He argued that some charges were improperly filed without consent from the Bahamas, where he was arrested and extradited. A second trial is scheduled for March 11 on charges brought after his extradition, pending consent from the Bahamas, including conspiracy charges. The timing of the country's consent is uncertain.
Resources: