By Luc Cohen
U.S. prosecutors mentioned Monday they’ll reject a bid by former cryptocurrency billionaire Sam Bankman-Fried to dismiss felony costs accusing him of stealing billions of {dollars} from purchasers to cowl losses at his hedge fund.
Bankman-Fried, the 31-year-old founding father of FTX Buying and selling, pleaded responsible in Manhattan federal courtroom to 13 counts of wire fraud, conspiracy, unlawful marketing campaign contributions and overseas bribery.
Could 8 Bankman-Fried urged U.S. District Decide Lewis Kaplan to dismiss many of the costs, saying prosecutors accused him of “dashing to judgment” when he was sentenced in 2022. a number of outstanding cryptocurrency firms went bankrupt, together with his personal Alameda Analysis.
In a submitting late Monday, prosecutors on the U.S. Lawyer’s Workplace in Manhattan referred to as Bankman-Fried’s solutions “unfounded.”
“The defendant’s alleged misconduct falls inside what these statutes prohibit,” prosecutors wrote.
Kaplan will hear oral arguments on June 15.
Bankman-Fried mentioned FTX’s threat administration was poor, however denied stealing the funds. He sought to distance himself from the collapse of Alameda, a crypto-focused hedge fund he owned. Its former CEO, Caroline Ellison, pleaded responsible and agreed to cooperate with prosecutors.
He additionally argued that a number of the fraud costs in opposition to him had been primarily based on a concept that was invalidated by the US Supreme Courtroom on Could 11.
The speculation, often called the “proper to regulate,” goals to deprive the sufferer of economically helpful data reasonably than materials possessions.
Prosecutors mentioned Monday that their costs weren’t primarily based on a “proper to regulate” concept as a result of Bankman-Fried sought to defraud his victims of fabric wealth.
“The first goal of the scheme was cash,” prosecutors wrote.
Bankman-Fried hits digital forex increase to $26 billion
Since his December extradition from the Bahamas, Bankman-Fried has been largely underneath home arrest at his dad and mom’ residence in Palo Alto, Calif., the place he has been held on $250 million bail. His trial is scheduled for October 2.
PROSECUTORS ASK THE BAHAMAS TO REPLY
Bankman-Fried requested Kaplan to drop a number of costs introduced by prosecutors after he was extradited, together with allegations that he bribed Chinese language officers to freeze Alameda property. He mentioned the brand new costs ought to be dismissed as a result of the Bahamas didn’t corroborate them.
Prosecutors mentioned Monday that they’d sought the Bahamas’ consent to the next costs and would drop these costs if the Bahamas didn’t agree.
Prosecutors additionally rejected Bankman-Fried’s request that Kaplan get them organized to show over any paperwork in FTX’s possession that might assist the protection. Bankman-Fried mentioned the corporate he ran was a part of a “felony crew” as a result of it solely handed on materials that helped the federal government.
