Despite Sam Bankman-Fried's wishes, no criminal charges against the FTX co-founder were dropped.
During the May 29th hearing, prosecutors overlooking FTX co-founder Sam Bankman-Fried's (SBF's) case deemed all criminal charges against SBF valid.
It is worth noting that SBF's lawyers attempted to dismiss the charges based on extradition technicalities and allegations of campaign finance infractions.
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Bankman-Fried filed pretrial motions to dismiss several charges lodged against him by US prosecutors in early May.
In the hearing regarding the motion, SBF's defense team disputed procedural issues, questioned the applicability of certain US laws given FTX's location outside the US, and argued that the charges went beyond the agreed-upon extradition terms.
Regarding Sam Bankman-Fried's claims, the prosecution contended that the extradition treaty with the Caribbean nation permits charges to be filed post-extradition, granting the extraditing country consent. As such, prosecutors maintained that any allegations filed after extradition in new indictments would not infringe this rule.
A charge filed in March accused the former executive of breaching the Foreign Corrupt Practices Act (FCPA). It alleged that Bankman-Fried had offered $40 million to anonymous Chinese officials in an attempt to persuade them to release frozen accounts.
While Bankman-Fried's defense countered that commodity fraud accusations are baseless due to their extraterritorial enforcement, US prosecutors argued that the charges should remain, given the impact of FTX's trades on US crypto markets.
Regarding allegations of violating campaign finance law revolving around Bankman-Fried contributing money under the names of FTX executives, prosecutors asserted that his defense falls short, as the indictment clearly explains his tactics to conceal the origins of donation funds.
With the continuation of charges upheld by the prosecution, Bankman-Fried is scheduled to appear in a New York court in October. This case highlights the ongoing scrutiny within the realm of cryptocurrencies and stands as a crucial development to monitor.
