After a few weeks of silence, Sam Bankman-Fried has reappeared on the scene. In the last hours, his lawyers requested dismiss 10 of 13 criminal charges that today weigh against the former CEO of FTX, within the framework of the bankruptcy case of the exchange of cryptocurrencies.
According to collect ReutersSam Bankman-Fried’s defenders criticized prosecutors in the case for charging their client with “worrying speed.” According to the presentation they made before a New York federal court, traditional processes were not respected and it was sought to rush the situation to “convert civil and regulatory matters into federal crimes.”
Recall that Sam Bankman-Fried was originally charged with 8 counts of fraud and conspiracy after the fall of FTX. However, they were later expanded to 13. Prosecutors claim that the businessman misled investors and clients of his cryptocurrency firm, and that he also stole billions of dollars from its users’ accounts. Said money would have been used to finance the operations of Alameda Research, his investment firm, as well as to buy properties and move political influence.
To this is added the accusation of having paid millionaire bribes to Chinese officials to regain access to a cryptocurrency account frozen by the government of that country.
Despite the caliber of the charges against him, Sam Bankman-Fried has insisted on his innocence from the start. At the end of March, in fact, he once again rejected the commission of any crime during the FTX administration. However, the outlook for him is still extremely delicate, considering that three of his top associates have already pleaded guilty and they are collaborating with the authorities.
Defense seeks dismissal of charges against Sam Bankman-Fried
Lawyers for Sam Bankman-Fried have asked that the following 10 charges against his client be dismissed:
- Conspiracy to commit wire fraud against FTX customers;
- Wire fraud on FTX clients;
- Conspiracy to commit fraud against FTX clients in connection with the buying and selling of derivatives;
- Fraud of FTX clients in connection with the buying and selling of derivatives;
- Conspiracy to commit wire fraud against Alameda Research lenders;
- Alameda Research Lender Wire Fraud;
- Conspiracy to commit bank fraud;
- Conspiracy to operate a money transfer business without a license;
- Conspiracy to make illegal political contributions and defraud the FEC;
- Conspiracy to violate the Foreign Corrupt Practices Act.
In this way, the only three crimes that would remain against Sam Bankman-Fried would be: conspiracy to commit securities fraud, securities fraud, and conspiracy to commit money laundering.
SBF’s strategy
The determination of Sam Bankman-Fried’s defense is not surprising. In fact, the lawyers had long ago hinted that they had an ace up their sleeve: that his client could only be tried for the charges that led to his being extradited from the Bahamas.
This is because a person deported under the treaty between the United States and the Caribbean island cannot be tried for other crimes than those that led to their extradition. In fact, in the documentation filed with the court, this strategy plays a key role. According to the lawyers, the illegal political contributions charge was not included in the original arrest warrant. While other accusations were added after the transfer of Sam Bankman-Fried to US territory.
We’ll see if the strategy pays off. For now, there are several months left before the trial, which is scheduled to start in October. It is clear that the last word on Sam Bankman-Fried and his responsibility for the FTX debacle has not yet been said.
Let us not forget that, while the future of the entrepreneur and its main slopes are being defined, the exchange of cryptocurrencies is trying to recover the funds of its clients. In March, it was estimated that around $9 billion had still not been located.