SBF loses bid to toss criminal charges over FTX’s collapse
US Judge Denies Sam Bankman-Fried’s Motion to Dismiss, Trial Set for October 2
Sam Bankman-Fried, the founder of now-bankrupt cryptocurrency exchange FTX, will face trial starting October 2 after a US judge denied his bid to have criminal charges against him thrown out. Bankman-Fried, 31, has been accused by federal prosecutors in Manhattan of stealing billions of dollars in FTX customer funds to cover losses at his hedge fund, Alameda Research. Additionally, he has been accused of misleading investors and lenders, as well as illegally making contributions to political campaigns in the names of his colleagues. Bankman-Fried has pleaded not guilty to all charges.
While Bankman-Fried has acknowledged inadequate risk management at FTX, he strongly denies any wrongdoing in relation to stealing customer funds. In May, he asked US District Judge Lewis Kaplan to dismiss 11 out of the 13 fraud and conspiracy charges he faced. He argued that some of the charges were based on a legal theory of fraud that has been invalidated by the Supreme Court, and that others were improperly brought without consent from the Bahamas, where he was arrested in December and extradited to the US.
However, Kaplan dismissed Bankman-Fried’s arguments, calling them either moot or without merit, in a ruling issued on Tuesday. The trial will now proceed as planned, with Bankman-Fried facing the charges brought against him. A spokesman for Bankman-Fried did not provide an immediate response to the ruling.
FAQs:
1. What are the charges against Sam Bankman-Fried?
Sam Bankman-Fried faces 13 fraud and conspiracy charges, including allegations of stealing billions of dollars in FTX customer funds, misleading investors and lenders, and illegally making contributions to political campaigns in the names of his colleagues.
2. When will the trial begin?
The trial is set to start on October 2.
3. Has Sam Bankman-Fried pleaded guilty or not guilty?
Sam Bankman-Fried has pleaded not guilty to all the charges brought against him.
4. What did Bankman-Fried argue in his bid to have the charges dismissed?
Bankman-Fried argued that some of the charges were based on a legal theory of fraud that has been invalidated by the Supreme Court, and that others were improperly brought without consent from the Bahamas, where he was initially arrested.
5. How did the judge respond to Bankman-Fried’s arguments?
US District Judge Lewis Kaplan dismissed Bankman-Fried’s arguments as either moot or without merit in his ruling, allowing the trial to proceed as planned.
SBF’s Attempt to Dismiss Criminal Charges in FTX’s Collapse Denial
US Judge Denies Sam Bankman-Fried’s Request to Dismiss Criminal Charges
In a courtroom development on Tuesday, US District Judge Lewis Kaplan denied Sam Bankman-Fried’s bid to have criminal charges against him thrown out. This decision sets the stage for the trial of the founder of now-bankrupt cryptocurrency exchange FTX to commence on October 2nd. Federal prosecutors in Manhattan have accused Bankman-Fried, 31, of stealing billions of dollars in FTX customer funds in order to offset losses at his hedge fund, Alameda Research. They also allege that he misled investors and lenders, and illegally made political campaign contributions under the names of his colleagues. The former billionaire, however, has pleaded not guilty.
Bankman-Fried has admitted to inadequate risk management at FTX, but vehemently denies any wrongdoing with regard to the alleged theft of funds. In May, Bankman-Fried sought to dismiss at least eleven out of the thirteen fraud and conspiracy charges he faces. He argued that some of the charges were based on a legal theory of fraud that has since been invalidated by the Supreme Court. Additionally, he claimed that certain charges were improperly brought without consent from the Bahamas, where he was arrested in December and subsequently extradited to the US.
In response to Bankman-Fried’s arguments, Judge Kaplan stated in his ruling, “The arguments are either moot or without merit.” At this time, a spokesperson for Bankman-Fried has not yet provided a comment on the outcome of the ruling.
As the trial date approaches, it is expected that further details will emerge regarding the alleged financial discrepancies and fraudulent activities surrounding Bankman-Fried and FTX.