Another round of FTX's Sam Bankman-Fried?!

Lawyers representing Sam Bankman-Fried, the former executive of FTX, have filed pre-trial motions seeking the dismissal of several charges on technical and procedural grounds. However, prosecutors argue that the charges, including extradition issues and campaign finance violations, are valid and should not be dismissed, according to court filings.

In late 2022, Sam Bankman-Fried was arrested in the Bahamas in connection with the collapse of FTX, the now-bankrupt cryptocurrency exchange. Subsequently, criminal charges were filed against him in the United States, alleging various offenses such as wire fraud, bank fraud, securities fraud, unlicensed money transmitting, money laundering, and illegal political contributions.

In March, Bankman-Fried faced an additional charge of conspiring to violate the anti-bribery provisions of the Foreign Corrupt Practices Act. He was accused of allegedly offering $40 million in bribes to Chinese officials to unfreeze accounts associated with Alameda Research, FTX's sister trading firm.

Earlier in May, Bankman-Fried's defense team submitted pre-trial motions seeking the dismissal of most charges brought against him by U.S. prosecutors. The defense argued on the basis of procedural issues, the applicability of certain U.S. laws given FTX's non-U.S. location, and the alleged violation of the agreed extradition terms. However, the motions did not seek the dismissal of securities fraud and money laundering charges.

Regarding Bankman-Fried's contention that charges require approval by the Bahamas prior to extradition, prosecutors countered that the extradition treaty with the Caribbean nation permits post-extradition charges with the consent of the extraditing country. They argued that any charges presented in new indictments after extradition do not violate this rule.

One of the charges, filed in March, accuses Bankman-Fried of violating the Foreign Corrupt Practices Act (FCPA) by allegedly offering $40 million to undisclosed Chinese officials to influence the unfreezing of accounts.

While Bankman-Fried argued that allegations of commodity fraud were invalid due to extraterritorial enforcement, U.S. prosecutors maintained that the charges should stand as FTX's trading activities had an impact on cryptocurrency markets within the United States.

Regarding the campaign finance law violations, which revolve around Bankman-Fried allegedly donating money in the names of FTX executives, prosecutors disputed his arguments, asserting that the indictment provides clear evidence of his efforts to conceal the source of funds for these donations.

The court filings also highlighted the defense's request for additional discovery documents, claiming that the FTX estate should be considered part of the “prosecution team” due to its cooperation with the U.S. Department of Justice.

Bankman-Fried's trial is scheduled to commence on October 2, 2023, in a New York court. In January, he pleaded not guilty to all charges. If convicted, the former crypto mogul could face a potential prison sentence of up to 115 years.