FTX Founder Bankman-Fried Seeks Dismissal of Charges Filed After Extradition – Exchanges Bitcoin News
The former CEO of cryptocurrency exchange FTX, Sam Bankman-Fried, has asked a US judge to dismiss several charges against him following his extradition from the Bahamas. His lawyers insist that prosecutors did not obtain approval from the Bahamas authorities for the additional charges.
FTX’s Sam Bankman Fred urges court to drop post-extradition charges
Lawyers Representing Sam Bankman-Fried (SBF), Co-Founder and Former CEO of Failed Cryptocurrency Exchange FTXOn Monday, a series of petitions were filed in Manhattan federal court, asking that a number of criminal charges against him be dropped.
Lawyers said the charges filed after his extradition to the United States are invalid because prosecutors did not obtain proper approval from the Bahamian government, Bloomberg reported. They are asking US District Judge Lewis Kaplan to give them up.
The 31-year-old crypto entrepreneur has been accused of running a multibillion-dollar scheme to defraud investors through what was one of the largest cryptocurrency trading platforms in the world before he filed for bankruptcy protection amid liquidity problems in November 2022.
US authorities also allege that SBF misused client funds, including to purchase real estate and leverage trading through its Alameda Research hedge fund. About a month after filing Chapter 11, he was arrested in Nassau, the capital of the Bahamas, where he was staying.
Sam Bankman Fred has agreed to a simplified extradition process to the United States. His lawyers say he still retains his rights under the extradition law, and insist he cannot be tried on charges beyond those for which he agreed to be extradited, saying:
Mr. Bankman Freed has agreed to be tried only on the charges in the original indictment which the Government of The Bahamas has agreed to extradite.
Since his arrival in the United States, prosecutors have filed replacement indictments in the case that brought the total number of charges to more than a dozen. Among them is a charge of violating the campaign finance law and several other fraud charges.
His lawyers explained that “after Mr. Bankman Freed’s return to this country, the government overturned the original indictment, not once but twice, improperly adding several new, unrelated counts without first obtaining the express consent of the Bahamas government.” Although, according to court documents, US prosecutors notified the Bahamas authorities before these indictments were revealed.
The SBF has pleaded not guilty to all charges and is expected to face trial in October. His lawyers are also trying to force the new management of FTX to hand over some documents to him. They accused the company’s new CEO, John Jay Ray, of acting “as a mouthpiece for the government by continuing to make disparaging remarks” about Sam Bankman-Fred.
Do you think Manhattan federal court will drop charges against Sam Bankman Fried post-extradition? Share your predictions in the comments section below.
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