Court Denies Bankman-Fried’s Motions to Dismiss Counts

A New York court has denied motions to dismiss counts against Sam Bankman-Fried.

The founder and former CEO of bankrupt cryptocurrency exchange FTX had sought a dismissal of 10 of the 13 counts he is facing, but the court ruled Tuesday (June 27) that he must face all of them, the Financial Times (FT) reported Tuesday (June 27).

Among the motions that were denied was the argument by Bankman-Fried’s lawyers that the court should throw out charges that were brought after he was extradited from the Bahamas because he hadn’t agreed to be extradited under those charges, according to the report.

The judge added that the argument could be renewed if the Bahamas objects to those charges, the report said.

It was reported June 13 that Bankman-Fried is asking a Bahamian court to dismiss certain charges levied against him by the U.S. government after his extradition last December. The FTX founder is seeking an opportunity to argue in the Bahamas that some of the charges should be dropped.

In total, the charges brought against Bankman-Fried include eight counts brought in December, including wire fraud and conspiracy to commit money laundering; four counts added in February, including securities and commodities fraud; and another charge brought in March, alleging conspiracy to bribe Chinese officials, per FT.

Bankman-Fried has pleaded not guilty to all the charges. He is now scheduled to stand trial on the pre-extradition charges in October, according to the report.

The FTX founder has long professed his innocence and has been building a case to show he is not guilty.

Along with the motions having to do with charges filed after the extradition, Bankman-Fried’s legal team has also filed a motion laying the groundwork for a defense arguing that he was just following the advice of his law firm, rather than knowingly committing criminal actions.

Proving that Bankman-Fried knowingly acted illegally is a necessary element for many of the criminal charges brought against him.

Tuesday’s court decision comes a day after the FTX Debtors released a report alleging that Bankman-Fried and a top lawyer for FTX repeatedly lied to banks and auditors, executed false documents, and assisted the firm and its various affiliates as they moved between jurisdictions to avoid detection of wrongdoing and erect an ongoing operational “mirage.”

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