U.S. District Court Denies Motion to Dismiss Former FTX CEO Sam


Attorney’s motion dismissed

The U.S. District Court for the Southern District of New York has dismissed a defense attorney’s motion to dismiss criminal charges against Sam Bankman-Fried, former CEO of bankrupt cryptocurrency exchange FTX.

Bankman-Fried has been indicted on 13 counts, and his lawyers filed a motion in May to dismiss 10 of them.

District Court Judge Louis Kaplan found most of the grounds in his motion to dismiss 10 charges, including bank fraud, wire fraud and conspiracy to commit fraud, conspiracy to commit fraud, securities fraud, money laundering, and campaign finance violations. denied and dismissed defendant’s allegations.

Judge Kaplan, citing federal appeals court precedent, said dismissing the charges “is an ‘extraordinary remedy’ reserved only in very limited circumstances involving fundamental rights.” He argued that it would only be supported in “very limited and extreme circumstances”, especially when it involved serious criminal activity.

The judge dismissed the motion to dismiss, arguing that “defendant’s allegations are moot or meritless.”

What is FTX

A cryptocurrency exchange led by Bankman-Fried. Since its establishment in 2019, it has rapidly made a name for itself and has grown into a major exchange after Binance, the largest exchange in the industry. After that, it went bankrupt and filed for bankruptcy in November last year.

▶Cryptocurrency Glossary

two trials

Bankman-Fried is currently facing two criminal trials. One is the eight charges that were brought in the first indictment in December last year, and the trial will start on October 2nd this year. Bankman-Fried pleaded not guilty to all eight charges in his January arraignment.

If convicted on all eight counts, he could face up to 115 years in prison, though some say the maximum sentences for each charge are not cumulative.

connection:Former FTX CEO Sam pleads not guilty to arraignment

The other trial concerns five additional charges, including campaign finance violations, that were filed in February and March after he was extradited to the United States from where he was staying in the Bahamas.

Defense attorneys argued that the five charges should be dismissed because Bankman-Fried did not consent to his extradition last December. But on June 15, Judge Kaplan ruled that the five cases should be tried separately from the original eight cases. A new trial is scheduled for March 11, 2024.

The trial in March will focus on charges of bribery conspiracy, operating an unauthorized money transfer business, bank fraud conspiracy, and derivatives and securities fraud.

Bankman-Fried was released on bail of about ¥36 billion ($250 million) after being deported to the United States. He is currently under house arrest at his parents’ home in California and is under intense surveillance, including a tracking device attached to his ankle.

Former FTX executive pleads guilty to criminal charges

Meanwhile, FTX co-founder Gary Wang and former CEO of sister company Alameda Research Caroline Ellison already pleaded guilty in December.

According to court documents, Ellison has been charged with seven charges, including wire fraud against FTX customers, wire fraud against Alameda Research moneylenders, conspiracy to commit commodity and securities transaction fraud, and money laundering fraud. Defendant Wang admitted to four charges.

Ellison’s charges carry up to 110 years in prison, but he has agreed to cooperate fully with investigators as some may be removed from office due to a plea bargain with the U.S. Department of Justice. They seem to have agreed.

connection:Former Alameda CEO Ellison and others plead guilty

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