FTX’s Bankman-Fried Seeks Dismissal of Charges Related to Crypto Collapse

Sam Bankman-Fried, the founder of the now-bankrupt cryptocurrency exchange FTX, has requested the dismissal of the majority of charges against him in connection with the collapse of his crypto empire. The pretrial motion, filed with the US District Court for the Southern District of New York on Monday, argues that prosecutors hastily pressed charges against Bankman-Fried.

In the motion, Bankman-Fried’s legal team seeks the dismissal of 10 out of the 13 charges, including fraud and money laundering, citing reasons such as the failure of prosecutors to clearly define the offenses. The filing contends that instead of allowing traditional civil and regulatory processes to address the situation, the government prematurely escalated the matter into federal crimes.

Once celebrated as one of the youngest billionaires and prominent figures in the crypto space, Bankman-Fried and FTX faced a downfall amid allegations of substantial fraud. Prosecutors claim that he misappropriated customer funds to cover losses at the affiliated trading house Alameda, purchase real estate, and make unlawful political contributions. Additionally, Bankman-Fried is accused of offering a bribe of at least $40 million to a Chinese government official to influence authorities to unfreeze accounts linked to his hedge fund.

Bankman-Fried, aged 31, has pleaded not guilty to all charges and is scheduled to face trial in New York in October. Prosecutors have until May 29 to respond to the dismissal request, and arguments will be heard by US District Judge Lewis Kaplan on June 15.

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