A U.S. judge has approved a request by prosecutors to hold a second trial for Sam Bankman-Fried, separate from his upcoming trial on October 2, 2023, which pertains to the collapse of FTX, a bankrupt cryptocurrency exchange.
This new trial will take place on March 11, 2024, and will focus on five charges brought by federal prosecutors in Manhattan, including bank fraud and bribery of Chinese officials.
These charges were filed after Bankman-Fried was extradited from the Bahamas in December. FTX was previously headquartered in the Bahamas.
Sam Bankman-Fried, who was once a billionaire, has pleaded not guilty to 13 charges related to fraud and conspiracy.
The initial indictment, filed in December, accused him of misappropriating billions of dollars from FTX customers to cover losses at his Alameda Research hedge fund, as well as lying to investors and lenders, and violating U.S. campaign finance laws.
While Bankman-Fried has admitted to inadequate risk management at FTX, he denies any wrongdoing regarding the alleged misappropriation of funds. I
n response to the five charges brought after his extradition, he requested that they be dismissed, along with the campaign finance charge, arguing that the Bahamas did not consent to them. As an alternative, he proposed a separate trial for these charges.
The prosecutors agreed to the idea of a separate trial for the post-extradition charges because it was uncertain when the Bahamas would grant consent.
According to the extradition treaty between the two countries, the Bahamas’ consent is required for charges that were not part of the original extradition request.
U.S. District Judge Lewis Kaplan issued a written order granting the prosecutors’ request for a separate trial. The decision means that Bankman-Fried will face two trials, with the first one scheduled for October 2, 2023, focusing on the collapse of FTX, and the second trial on March 11, 2024, dealing with the post-extradition charges.
Sam Bankman-Fried Granted Second Trial
The Recent developments in the case highlights the complex legal situation surrounding Sam Bankman-Fried and the various allegations brought against him.
The decision to hold a separate trial for the charges stemming from his extradition underscores the importance of the consent of the country from which an individual is extradited, as outlined in extradition treaties.
It remains to be seen how these trials will unfold and what the outcomes will be for Bankman-Fried, who maintains his innocence and denies any involvement in criminal activities.
Judge Kaplan’s order states that the campaign finance charge will remain a part of Bankman-Fried’s trial scheduled for October 2. Both Bankman-Fried’s spokesperson and the U.S. Attorney’s office in Manhattan declined to provide any comments regarding the judge’s order.
During a hearing held earlier that day in the Manhattan federal court, Judge Kaplan expressed skepticism regarding Bankman-Fried’s efforts to have the charges dismissed. He raised doubts about the former cryptocurrency star’s standing to invoke the extradition treaty.
In a conversation with Mark Cohen, one of Bankman-Fried’s lawyers, Judge Kaplan stated, “You have a major problem. Regardless of any complaints the Bahamas may have about the United States, the question is whether your client has the right to raise them.”
Separately, Judge Kaplan denied Bankman-Fried’s request to compel prosecutors to review specific files from FTX. Bankman-Fried had sought a declaration that the current leadership of FTX should be considered part of the “prosecution team,” thereby obligating the company to provide documents for his defense. However, Judge Kaplan rejected this request.
In conclusion, Judge Kaplan’s order to hold a separate trial for the charges brought after Sam Bankman-Fried’s extradition adds a new dimension to the legal proceedings surrounding the former crypto billionaire.
The inclusion of the campaign finance charge in the October 2 trial, along with the denial of Bankman-Fried’s request for FTX’s files, further underscores the challenges he faces in his legal defense.
As the trials approach, the outcomes will not only impact Bankman-Fried’s personal fate but also have implications for the broader cryptocurrency community, shedding light on the regulatory framework and accountability within the industry.
