April 19, 2024
Latest Cryptocurrency News

Legal Troubles Mount for Sam Bankman-Fried as FTX Collapse Fallout Continues 

Sam Bankman-Fried, the former CEO and founder of FTX has made a pretrial motion to dismiss 10 of the 13 charges leveled against him, as per court filings. Bankman-Fried, who is presently under house arrest at his parent’s residence in Palo Alto, California, is expected to stand trial in October for allegations such as wire fraud, conspiracy to launder money, and conspiracy to misuse customer funds. 

Aside from these accusations, he is also confronting lawsuits from the SEC and the CFTC, both of which are based on comparable charges. Additionally, the US District Court for the Southern District of New York has filed a lawsuit against Bankman-Fried, alleging that he bribed Chinese officials with at least $40 million. 

In a recent court filing on Monday, lawyers representing Sam Bankman-Fried from the law firm Cohen & Gresser have moved to have several charges against him dismissed. Specifically, they are seeking to dismiss charges related to conspiracy to commit wire fraud and bank fraud, as well as charges relating to bribery and political contributions. 

However, despite their efforts, Bankman-Fried’s legal team has not challenged three other charges, which include conspiracy to commit securities fraud, securities fraud, and conspiracy to commit money laundering. 

Sam Bankman-Fried, who had previously pleaded not guilty to eight counts of criminal charges in the United States in January, may now be embroiled in a lengthy legal battle. This follows his recent pretrial motion to dismiss several charges, which could significantly impact the case. 

Additionally, in late December, Gary Wang, FTX’s co-founder and former CTO, and Caroline Ellison, CEO of Alameda Research, pled guilty to federal criminal charges related to the collapse of FTX. The two individuals are also facing civil penalties from both the SEC and the CFTC in connection with the criminal charges. 

Given their close association with FTX and its affiliate crypto hedge fund- Alameda, Wang, and Ellison are expected to be key witnesses for prosecutors and may play a crucial role in the case against Bankman-Fried. 

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