The legal team of former FTX CEO Sam Bankman-Fried [SBF] who is indicted on 13 criminal counts has now filed documents requesting the court to drop 10 of those charges arguing that the government “classic[ally] rushed to judgment.”
According to the attorneys, additional allegations against Bankman-Fried in a supplemental indictment breach the extradition agreement with the Bahamas.
Crypto researcher Molly White who first broke the news noted that “at least part of it seems to come down to the fact that additional charges were added after SBF’s extradition agreement was made.”
One of the justifications for tossing out the charges outlined in the file was the team in charge of FTX’s bankruptcy procedures is said to have joined the prosecution.
This was a direct reference to FTX’s new CEO John Ray III and his staff who the attorneys blamed were compiling evidence on behalf of the prosecution.
According to the motion notice filed in the southern district court of New York on May 8, the defense team of the indicted CEO has sought to dismiss all except for three charges- conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering.
Prosecutors have until May 29 to respond to this dismissal plea, and U.S. District Judge Lewis Kaplan will hear arguments on the matter on June 15.
SBF’s latest move to drop the majority of the allegations stands in stark contrast to the other members of the FTX founder’s so-called inner circle, who have all pleaded guilty and are cooperating with the prosecution’s probe.
FTX Former CEO’s Trial Starts In Oct
The ousted CEO had already entered a not-guilty plea to eight criminal charges in January and five additional counts in March.
This was no surprise as criminal lawyers predicted that Bankman-Fried would enter a not-guilty plea. Christine Chung, a Law professor said;
It is common for defendants to do this. A not-guilty plea generally opens the door to the discovery process, which would give Sam Bankman-Fried a better idea of the evidence that the government has collected thus far in its investigation.
FTX and sister firm Alameda collapsed in November after concerns over their balance sheet sparked a bank run leading to their bankruptcy. Bankman-Fried’s trial is set to begin in October.