UNITED STATES NEWS

Prosecutors say Sam Bankman-Fried’s arguments to dismiss cryptocurrency charges are meritless

May 29, 2023, 9:46 PM

NEW YORK (AP) — Sam Bankman-Fried’s lawyers made meritless arguments in a bid to convince a judge to toss out criminal charges alleging that the FTX founder stole from investors in his multibillion dollar cryptocurrency fund, federal prosecutors said Monday.

In papers filed in Manhattan federal court, prosecutors responded to early May filings in which Bankman-Fried’s lawyers insisted that the United States overreached in its case against Bankman-Fried, making federal crimes out of regulatory issues.

“These motions are meritless,” prosecutors wrote in a nearly 100-page filing. “The charges track the relevant statutes and the defendant’s alleged misconduct falls within the heartland of what these statutes prohibit.”

Bankman-Fried, 31, has been living with his parents in Palo Alto, California, after posting a $250 million personal recognizance bond after his December extradition from the Bahamas.

Bankman-Fried has pleaded not guilty to charges that he cheated investors and looted customer deposits on FTX to make lavish real estate purchases, donate money to politicians and make risky trades at Alameda Research, his cryptocurrency hedge fund trading firm. U.S. Attorney Damian Williams has called it one of the biggest frauds in U.S. history.

In March, new charges added to the indictment alleged that Bankman-Fried violated the anti-bribery provisions of the Foreign Corrupt Practices Act by directing the payment of $40 million in bribes to a Chinese official or officials to free up $1 billion in cryptocurrency that was frozen in early 2021.

In requesting all charges be dismissed, defense lawyers said eight counts in the original indictment were too vague and non-specific to proceed to trial and that additional charges were barred by an Extradition Treaty between the U.S. and the Bahamas that prohibited charges not approved at the time of extradition.

Prosecutors, though, asked Judge Lewis A. Kaplan to let all charges proceed. They said the claims against the original charges were legally sufficient and that permission is being sought from the Bahamas to permit the newest charges.

Prosecutors wrote that they expect Bankman-Fried’s lawyers to argue at trial that their client was not involved in Alameda’s day-to-day activities and was unaware that Alameda borrowed large sums from FTX to repay its lenders.

“The defendant’s spending of misappropriated funds on political donations is probative of the defendant’s motive for defrauding FTX’s customers and investors: the defendant wanted access to capital that he could use, in part, for political donations that would burnish his own image and improve the regulatory prospects of his business in the United States,” prosecutors wrote.

FTX entered bankruptcy in November when the global exchange ran out of money after the equivalent of a bank run. A trial is tentatively set for the fall.

Attorneys for Bankman-Fried did not respond late Monday to emailed requests for comment.

United States News

FILE - A road cuts through a flooded area south of Perry, Fla., following the passage of Hurricane ...

Associated Press

Florida agriculture losses between $78M and $371M from Hurricane Idalia, preliminary estimate says

ST. PETERSBURG, Fla. (AP) — Florida agriculture losses from Hurricane Idalia are estimated at between $78 million and $371 million, with producers also suffering widespread damage to such infrastructure as irrigation rigs and fences, according to a preliminary report Thursday from the University of Florida. The Category 3 hurricane came ashore Aug. 30 along Florida’s […]

37 minutes ago

Associated Press

Senate confirms new army chief as one senator’s objection holds up other military nominations

WASHINGTON (AP) — The Senate is confirming three of the Pentagon’s top leaders, filling the posts after monthslong delays and as a Republican senator is still holding up hundreds of other nominations and promotions for military officers. Gen. Randy George was confirmed as Army Chief of Staff on Thursday, and Gen. Eric Smith is expected […]

43 minutes ago

Associated Press

Biden says Norfolk Southern must be held accountable for Ohio derailment but won’t declare disaster

President Joe Biden ordered federal agencies to continue holding Norfolk Southern accountable for its February derailment in eastern Ohio and appoint a FEMA official to oversee East Palestine’s recovery, but he still stopped short of declaring a disaster. Biden issued the executive order Wednesday evening. Part of the order essentially directed the environmental, health and […]

57 minutes ago

Associated Press

Philadelphia Sheriff’s Office can’t account for nearly 200 guns, city comptroller finds

PHILADELPHIA (AP) — The Philadelphia Sheriff’s Office can’t account for 185 missing guns, according to a report released this week by the city controller’s office. Some of the missing guns were part of the sheriff’s office’s arsenal and others were confiscated from people subject to protection-from-abuse orders. Acting City Controller Charles Edacheril said his office […]

1 hour ago

FILE - Rupert Murdoch attends the WSJ. Magazine 2017 Innovator Awards at The Museum of Modern Art i...

Associated Press

Rupert Murdoch, creator of Fox News, stepping down as head of News Corp. and Fox Corp.

Rupert Murdoch, the 92-year-old media magnate who created Fox News, is stepping down as leader of both Fox's parent company and his News Corp. media holdings.

4 hours ago

Associated Press

Stock market today: World shares track Wall Street’s slump after Fed says rates may stay high in ’24

World shares have declined, echoing a slump on Wall Street after the Federal Reserve said it may not cut interest rates next year by as much as it earlier thought. Benchmarks fell by 1% or more in Paris, Tokyo, Sydney and Hong Kong. U.S. futures slipped and oil prices also were lower. On Wednesday, the […]

12 hours ago

Sponsored Articles

...

DAY & NIGHT AIR CONDITIONING, HEATING AND PLUMBING

Importance of AC maintenance after Arizona’s excruciating heat wave

An air conditioning unit in Phoenix is vital to living a comfortable life inside, away from triple-digit heat.

...

Ignite Digital

How to unlock the power of digital marketing for Phoenix businesses

All businesses around the Valley hopes to maximize their ROI with current customers and secure a greater market share in the digital sphere.

...

OCD & Anxiety Treatment Center

5 mental health myths you didn’t know were made up

Helping individuals understand mental health diagnoses like obsessive compulsive spectrum disorder or generalized anxiety disorder isn’t always an easy undertaking. After all, our society tends to spread misconceptions about mental health like wildfire. This is why being mindful about how we talk about mental health is so important. We can either perpetuate misinformation about already […]

Prosecutors say Sam Bankman-Fried’s arguments to dismiss cryptocurrency charges are meritless