• US prosecutors say the criminal trial of FTX co-founder Sam Bankman-Fried will be going ahead with the eight charges he was initially pinned for.
• The DoJ cited a motion filed by Bankman-Fried in the Bahamas, arguing that many of the 13 charges he faced were not in the original indictment.
• Bankman-Fried is accused of commingling customer funds and misleading investors about FTX’s risk management practices, leading to losses for investors and customers.
US Prosecutors Move Forward With SBF’s Trial
US prosecutors have announced that they will proceed with trying FTX co-founder Sam Bankman-Fried (SBF) on the eight criminal charges initially levied against him in December 2022. This decision came following a motion filed by SBF in the Bahamas protesting additional charges which could lead to a lengthy litigation process.
Original 8 Charges Against SBF
SBF is accused of commingling customer funds and misleading investors about FTX’s risk management practices, leading to losses for investors and customers. Caroline Ellison, former CEO of sister company Alameda Research, and FTX co-founder Gary Wang have both pleaded guilty to fraud charges in connection with the exchange’s collapse. However, Bankman-Fried has claimed that management mistakes and not intentional actions caused these losses.
Additional Charges Filed Against SBF
In February 2022, United States prosecutors unsealed an additional four charges relating to fraud and fraud conspiracy against SBF as well as an additional charge alleging bribes to Chinese officials in March 2022. Following his extradition from the Bahamas, these new charges were added which prompted SBF to file a motion challenging them before they can be agreed upon by officials in Bahrain.
Supreme Court Of The Bahamas Ruling
The Supreme Court of The Bahamas ruled that Bankman- Fried must be given an opportunity to formally challenge these new charges prior to them being agreed upon. Therefore, US prosecutors decided to move forward with trying him on only the eight initial allegations while they await this legal process involving further accusations against him which may take some time before its resolution near or even after his trial date scheduled for December 2022 has passed.
Creditors Owed Over $3 Billion
At least until then it appears that creditors owed over $3 billion from after FTX’s liquidity crisis in November 2022 will not receive any compensation from their losses due to mismanagement accordingt o allegations against Bankman- Fried who claims otherwise otherwise