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FTX Founder Caught in Legal Maelstrom
Source: bitcoinist; compilation: Blockchain Knight
As the legal net continues to tighten, U.S. prosecutors have called for a separate trial of Sam Bankman-Fried, founder of defunct crypto exchange FTX, to deal with new charges against him.
The new charges, which include foreign bribery, bank fraud and conspiracy, follow his extradition from the Bahamas in December 2022, when FTX collapsed.
Sam Bankman-Fried, once a billionaire who runs one of the most prominent crypto exchanges, is now facing a series of serious allegations.
Initially, he was indicted on 8 counts, including accusing him of stealing billions from FTX clients and misleading investors and lenders,** however after his extradition, the list of charges was expanded to 13**.
Prosecutors filed five new charges against Bankman-Fried after his return to the United States.
Now, the 31-year-old entrepreneur has maintained his innocence and is asking U.S. District Judge Lewis Kaplan to dismiss the new charges or hold a separate trial on Oct. 2 if necessary.
Meanwhile, a court in the Bahamas, where FTX is based, issued a temporary injunction on Tuesday that temporarily prevents the Bahamian government from approving a U.S. request to bring new charges against Bankman-Fried**.
U.S. Attorneys in Manhattan have proposed to Judge Kaplan a separate trial on the five counts amid the uncertainty posed by the Bahamian courts. If approved, the trial would take place in the first quarter of 2024.
Prosecutors have pledged to drop the charges if the Bahamas refuses to grant approval.
A hearing to consider those issues is scheduled for Thursday at 10:30 a.m. ET, when Judge Kaplan will hear arguments from both sides.
Meanwhile, Bankman-Fried last month asked for the charges against him to be dropped.
The disgraced founder and his lawyers proposed dismissing 10 of the 13 charges he faced, including conspiracy to commit securities fraud, conspiracy to commit money laundering and conspiracy to commit commodities fraud.
His legal team maintains that several of the charges were added after his extradition from the Bahamas,** and that four of the five most recent additions "substantially violate the special provisions of the treaty"**.
The legal team is now pressing the court to drop 10 of the 13 charges brought against Bankman-Fried.