Bankman-Fried, the individual associated with FTX, has not taken steps to dismiss charges related to securities fraud or money laundering.
Late on Monday, Sam Bankman-Fried, the founder of FTX, submitted legal motions before the trial to request the dismissal of most of the charges against him. He cited various reasons to support his request.
Bankman-Fried, who is scheduled for trial in the coming fall, is facing more than a dozen charges that cover a wide range of allegations. These include wire fraud, securities fraud, commodities fraud, and even bribery claims. These charges stem from his actions as the former CEO of a cryptocurrency exchange based in the Bahamas called FTX. Last November, FTX experienced a significant collapse, leading to the filing for bankruptcy by nearly 100 associated firms and subsidiaries.
In the pretrial motions submitted on Monday by Bankman-Fried’s attorneys, they requested the dismissal of several charges. These charges include conspiring to commit wire fraud against FTX customers, wire fraud against FTX customers, conspiring to commit wire fraud against Alameda Research lenders, wire fraud against Alameda Research lenders, and conspiracy to commit bank fraud. The basis for their request is that the prosecutors failed to adequately demonstrate a valid property right, which they argue is necessary to establish the offenses.
Bankman-Fried’s attorneys also requested the dismissal of charges related to bank fraud conspiracy, operating as an unlicensed money transmitter, unlawful political contribution, and bribery. They made this request based on discovery grounds, which means they believe that the evidence provided by the prosecution during the discovery process is insufficient to support these charges.
Another motion was filed to dismiss the fraud charges against FTX customers and the charge of operating as an unlicensed money transmitter. The basis for this request is the argument that the charges fail to establish a valid offense.
A final motion has been submitted to dismiss the charges of bribery and unlawful political contributions. The motion argues that these charges should be dropped.
Bankman-Fried’s attorneys did not request the dismissal of charges related to conspiracy to commit securities fraud, securities fraud, and conspiracy to commit money laundering. These charges will still be addressed in the legal proceedings.
During an arraignment, Mark Cohen, Bankman-Fried’s main attorney, suggested that motions to dismiss would be filed, indicating that his client does not accept the possibility of being tried on charges added after extradition. Bankman-Fried pleaded “not guilty” to the charges presented in earlier indictments.
In a legal document supporting the motions, Bankman-Fried’s attorneys stated that he consented to extradition based on a specific list of charges. However, they pointed out that certain charges were later added that were not included in the original list.
As part of their argument, Bankman-Fried’s attorneys highlighted that according to the extradition treaty between the Bahamas and the U.S., the Bahamas is required to give “consent” to charges added after the extradition. However, since Bankman-Fried was residing in the Bahamas at the time of his arrest, the Bahamas cannot provide consent without receiving additional information that has not been provided thus far.
In other legal documents, additional arguments were presented to support Bankman-Fried’s motions for dismissal. These arguments include the claim that FTX did not have a requirement to register as a money transmitter and that certain laws being used to charge Bankman-Fried do not apply to FTX because it is based outside of the United States.
In another submission, a request was made for additional discovery documents, arguing that FTX should be considered as part of the “prosecution team.” This claim is based on FTX’s cooperation with the Department of Justice. The request seeks to obtain more information to support their defense.
According to the filing, it was stated that “The FTX Debtors and their outside counsel are making significant efforts to assist the prosecution that go beyond just cooperating with a criminal investigation.” This means that FTX and their legal representatives are going to great lengths to provide assistance and support to the prosecution in a manner that surpasses regular cooperation in a criminal investigation.
