Former FTX CEO Sam Bankman-Fried a.k.a SBF is awaiting his court trial slated on Oct after pleading not guilty. However, lawyers representing SBF have expressed concern that the legal proceedings might be delayed by “months or years” after the latest action.
According to the 12th June filing, the government allegedly skipped over the customary civil regulatory procedures and instead moved quickly to indict Mr. Bankman-Fried on December 9, 2022, less than a month after FTX’s bankruptcy and before it had even been given.
Last year, Bankman was arrested in the Bahamas after U.S. prosecutors filed criminal charges.
Eight counts were included in the grand jury indictment, including violations of campaign finance laws, securities fraud, money laundering, and conspiracy to commit wire fraud against lenders and customers.
After Bahamas agreed to extradite on seven of the original eight charges, the Government ignored and decided to prosecute on all eight charges, the filing alleged.
In addition, US authorities brought six more accusations without first requesting [or receiving] The Bahamas’ permission, as required by the extradition agreement.
Prior to the latest filing, the legal team of the former FTX CEO submitted documents on May 8th, requesting the court to drop 10 out of 13 criminal counts arguing that the government “classic[ally] rushed to judgment.”
The three exempted charges are conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering.
Attorneys claimed that 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.”
US Prosecutors Slammed SBF’s Dismissal Plea
The then filling also alleged that FTX’s new CEO John Ray III and his team were compiling evidence on behalf of the prosecution.
On the other hand, US prosecutors have criticized the arguments as “meritless,” in response to the dismissal plea, and insisted that Bankman-Fried’s alleged misbehavior clearly violates the relevant statutes.
According to the source, US District Judge Lewis Kaplan will hear the case’s oral arguments on June 15.
The ousted CEO-led FTX and sister firm Alameda collapsed in November after concerns over their balance sheet sparked a bank run leading to their bankruptcy.