The lawyers of FTX founder Sam Bankman-Fried last Monday, May 8, filed petitions to dismiss the charges brought against him by the US government, of involvement in fraud.
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Lawyers for the founder of one of the world’s largest crypto exchanges claim that the American government has not provided a sound explanation of what kind of illegal actions their client committed. The defense appealed to the judge to dismiss most of the charges against Sam Bankman-Fried, including those related to fraudulent practices and involvement in bribery.
The founder of the crypto exchange has pleaded not guilty to 13 charges. Prosecutors insist on his involvement in the theft of FTX customer deposits. According to them, Sam Bankman-Fried used these funds to finance risky bets in his hedge fund Alameda Research and to send contributions to American politicians.
Sam Bankman-Fried’s lawyers note in their solicitations that the general downturn in the cryptocurrency market could potentially affect the government’s attitude towards the defendant and his business practices, but, in their opinion, there is no reason to declare federal crimes.
The lawyers also emphasize that during the collapse of FTX, politicians and regulators in the United States discussed possible options for applying existing legal control in the crypto industry and relation to foreign companies of the relevant profile, but did not make a final decision.
FTX, until its bankruptcy in November last year, was one of the most respected and recognized cryptocurrency platforms at a high level.
Within two weeks, the government must respond to the petitions of Sam Bankman-Fried’s lawyers. The judge has scheduled the next hearing for June 15, when the founder of the crypto exchange is expected to return to court.
The accused is under house arrest on $250 million bail. He is awaiting a court decision at his parents’ home in Palo’Alto, California. Sam Bankman-Fried admitted the fact that he made mistakes in the management of his business, but at the same time rejected accusations of fraudulent activity.
Three former business partners of the founder of the crypto exchange — Gary Wang, Caroline Ellison, and Nishad Singh — pleaded guilty to numerous charges and decided to cooperate with the investigation.
If the court finds Sam Bankman-Fried guilty on all counts, a decision may be made to impose a sentence of imprisonment for more than 155 years. The trial is scheduled for October this year.
As we have reported earlier, FTX Lawyers Recover Billions and Bill Millions Investigating Exchange Reboot.
