FTX crypto collapse: Sam Bankman-Fried seeks to dismiss most criminal charges
Written by ABC AUDIO on May 9, 2023
(NEW YORK) — Sam Bankman-Fried on Monday sought to dismiss most of the criminal charges he faces in connection with the collapse of FTX, the crypto exchange he founded.
Bankman-Fried filed a motion to dismiss 10 of the 13 counts he faces, including fraud, conspiracy and foreign bribery.
The two-page motion included a reference to declarations from two of Bankman-Fried’s attorneys that would give the underlying reasons why he thinks the charges should be dismissed. The motion said at least some of the charges failed to properly state an offense.
Bankman-Fried was arrested in December 2022 in the Bahamas, where FTX was based. He has been confined to his parents’ home in Palo Alto, California, since his extradition to the United States.
He has pleaded not guilty to the charges contained in the indictments returned in Manhattan, New York, where federal prosecutors said he misappropriated billions of dollars from FTX before it went bankrupt. Prosecutors allege he used the money to cover losses at his hedge fund, Alameda Research, to buy lavish real estate and to make political donations.
In a November 2022 interview with ABC News, before his arrest, Bankman-Fried said he was ultimately responsible for the downfall of both companies, but denied that he knew “that there was any improper use of customer funds.”
Prosecutors have until the end of the month to respond to Bankman-Fried’s motion to dismiss.
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