The Department of Justice’s case against the founder of the failed Bitcoin exchange FTX, Sam Bankman-Fried, has been separated into a separate criminal case. This is stated in the постановлении of the Southern District of New York dated June 15.
According to the document, five of the 13 charges brought against the entrepreneur will be heard separately on March 11, 2024. Earlier, the DOJ sought dismissal of them from Bahamian authorities, as they were filed after Bankman-Fried’s extradition to the United States. Referring to this latest fact, the founder’s lawyers unsuccessfully attempted to challenge them.
On June 14, DOJ lawyers said they intended to continue the proceedings on the initial eight charges due to potential delays while awaiting approval of the motion filed by Bankman-Fried in the Bahamas. It was originally scheduled for October 2.
During the March hearing, the court will focus on charges of bribery, conspiracy to operate an unlicensed money-transfer business, conspiracy to commit bank fraud, and manipulations of derivatives and securities.
In December 2022, the U.S. Department of Justice charged the head of FTX with eight counts. He was arrested in the Bahamas and extradited to the United States, where he was released on a $250 million bond.
In February 2023, prosecutors increased the number of charges against Bankman-Fried to 12, and in March — to 13. He pleaded not guilty to none of the counts, including bribery of a Chinese official.
Former Alameda Research head Caroline Ellison and FTX co-founder Gary Wang pleaded guilty and agreed to cooperate with authorities. Later, their example was followed by Nishad Singh, the CTO of the collapsed exchange.
In April, the court approved strict controls over Bankman-Fried’s and his parents’ mobile phones during house arrest.