FTX co-founder Sam Bankman-Fried facing two criminal trials

FTX co-founder Sam Bankman-Fried facing two criminal trials

Time Stamp: June 19, 2023 12:00 AM
FTX co-founder Sam Bankman-Fried facing two criminal trials PlatoBlockchain Data Intelligence. Vertical Search. Ai.
  • The former CEO is now facing two separate trials for the charges against him during his time as the CEO, including mismanagement of the crypto exchange.
  • The trial is set to begin on March 11, 2024.
  • Initially, Bankman-Fried had the trial scheduled on October 2 for 13 charges.

FTX co-founder Sam Bankman-Fried is now facing two separate trials. The trials are for the criminal charges against him concerning his alleged mismanagement of the crypto exchange. Initially, Bankman-Fried was scheduled to trial on October 2 for 13 charges. They included fraud, fraud conspiracy, and bribery. However, a recent United States District Court Judge Lewis Kaplan ruling has split five charges into a second trial. The trial is set to begin on March 11, 2024.

The FTX founder was extradited to the United States in December 2022 to face eight charges. Additionally, February and March 2023 indictments added five more charges to the list. The decision to split the charges came after the Department of Justice (DOJ) prosecutors sought a waiver from Bahamian authorities. This was to try Bankman-Fried on the additional charges imposed after his extradition.

READ: Sam Bankman-Fried, former Billionaire and FTX boss arrested

Bankman-Fried’s lawyers argued for dismissing the charges added after his extradition. They asserted that he could not be tried for offences that occurred after the extradition process. However, on June 14, DOJ lawyers announced their intention to proceed with the trial based on the original eight charges. Moreover, DOJ expressed concerns about the potential delay if they were to wait for the approval of a motion filed by Bankman-Fried in The Bahamas.

The second trial, scheduled for March, will specifically focus on four charges. These charges are bribery conspiracy, conspiracy to operate an unlicensed money-transmitting business, bank fraud conspiracy, derivatives and securities fraud. The remaining charges include wire, derivatives, securities fraud, and conspiracy. They were allegedly carried out at FTX and Alameda Research, along with accusations of money laundering.

READ: FTX Expansion into Africa: A new initiative to regain its former glory

Bankman-Fried’s legal situation highlights the complex legal proceedings surrounding the allegations against him. By splitting the charges into two separate trials, the court aims to address the different aspects of the case more efficiently. As the trials unfold, it will be crucial to carefully examine the evidence presented and allow the legal process to determine the outcome.

It is important to remember that the charges against Bankman-Fried are allegations, and he is presumed innocent until proven guilty in a court of law. The legal proceedings will provide both the prosecution and the defence an opportunity to present their arguments and evidence, and a fair judgment will be reached based on the case’s merits.

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