SBF Will Now Be Facing Two Trials as Judge Splits Charges

Legal troubles for FTX founder Sam Bankman-Fried (SBF) have intensified as his criminal charges will be split, as per a ruling that was made on June 15. SBF will now be facing two separate trials. Initially, the trial for all 13 charges was scheduled to commence on October 2, 2023, but 5 of those are now slated for March 11, 2024. 

SBF Now Faces Two Trials

On June 15, 2023, the United States District Court Judge, Lewis Kaplan, signed a ruling splitting the 13 charges to 8 and 5. SBF was arrested in the Bahamas, where FTX has its headquarters, on December 13, 2022. He was extradited to the U.S. on December 20, and at the time, eight charges were mentioned in the extradition documents. 

While the other five charges were added between February and March 2023, the reason behind the split is the waiver request by the Department of Justice (DoJ) from the Bahamian authorities to try SBFon five additional charges. Additionally,SBF’s lawyers tried to dismiss these charges which were added to the list after the extradition. 

When the Bahamian authorities arrested SBF, he was kept in the notorious Fox Hill prison. He and his team were initially reluctant and wanted to fight against extradition. However, the lack of amenities at the prison made him opt for extradition. 

SBF’s lawyers argued that the added charges should be dismissed as they were added after the extradition. However, the plaintiffs argued that they were mentioned in the diplomatic note. Additionally, a country can add extra charges as long as they do not affect the case. Furthermore, the Bahamas may refrain from disputing the subject matter as alleged by individuals closely associated with the case.

On June 14, 2023, the lawyers from the DoJ said that they wished to proceed with the original eight counts of charges. They argued that the extra charges’ settlement could stretch the process and cause unnecessary delay. The likelihood of such a delay would be higher if  the court chooses to wait for the approval of the motion filed in the Bahamian court by SBF. 

The new trial is scheduled for March, 2024. It will focus on charges of bribery conspiracy, bank fraud conspiracy, derivatives and securities fraud, and conspiracy to operate an unlicensed money-transmitting business. 

On June 12, 2023, the ex-FTX CEO filed a pretrial motion to dismiss most of the 13 charges. SBF’s lawyers argued for this dismissal on various grounds. 

It should be noted that SBF had pleaded not guilty to all the charges. Interestingly, Bankman-Fried’s alleged girlfriend and ex-CEO of Alameda, Caroline Ellison, and co-founder Gary Wang had already pleaded guilty and are acting as witnesses against SBF.  

The authorities’ decision to split the charges is intelligent as this would enable the trial to proceed smoothly for the charges mentioned in the extradition treaty. 

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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