Sam Bankman-Fried, the founder of the now-bankrupt FTX cryptocurrency exchange, has filed a motion to dismiss 10 out of 13 criminal charges against him related to the collapse of his company. Federal prosecutors have accused Bankman-Fried, a former billionaire, of stealing billions of dollars in customer funds to cover losses at Alameda Research, purchase real estate properties and make political contributions through an illegal straw-donor scheme.
Bankman-Fried's lawyers argue that many cryptocurrency exchanges collapsed during a broad market crash in 2022 and that their client was hastily charged by the government in a "rush to judgment." Among the charges he is not contesting are conspiracy to commit commodities fraud, conspiracy to commit securities fraud and conspiracy to commit money laundering.
Three former close associates - Caroline Ellison (former Alameda co-CEO), Gary Wang (former FTX technology chief) and Nishad Singh (former FTX engineering chief) - have all pleaded guilty and agreed to cooperate with prosecutors. The trial for Bankman-Fried is set for October 2 after entering a not guilty plea on fraud and campaign-finance law charges back in March.
In addition to seeking dismissal on some counts due to failure in properly stating an offense, Bankman-Fried's legal team also claims that Sullivan & Cromwell – representing FTX during its bankruptcy – may be withholding crucial evidence. The prosecution has until the end-of-month deadline given by court order.
Bankman-Fried maintains his innocence regarding alleged misappropriation worth billions from customers' accounts before FTX went under; he took responsibility for both companies' downfall during an interview with ABC News back in November 2022 prior being arrested. If convicted on these remaining charges alone could result decades spent behind bars within federal prison system