Founder and former Chief Executive Officer (CEO) of FTX, Sam Bankman-Fried is requesting that his case be thrown out of court. Meanwhile, his scheduled court hearing is not until October and he now claims that the prosecutors have only magnified civil and regulatory issues into what is now a federal crime.
SBF alleges that the regulatory issues were only an offshoot of the industry-wide crypto winter that plagued the sector. Legal representatives of the young billionaire filed in the Southern District Court in New York on Monday that charges against him, except three, be dismissed from court.
Court Adds Five New Charges
The other three counts which they are not attempting to contest are conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering.
Before Bankman-Fried pleaded not guilty in New York, he was charged with about eight counts but in the weeks leading up to his court hearing, additional five charges were added. Now, his lawyers are saying that four out of the newly added charges “violates the Treaty’s rule of specialty provision.”
FTX Lawyers Accused of Conniving With U.S Government
Noteworthy, this is his first detailed legal defense since he was indicted a few months ago. In addition to their requests, SBF’s lawyers accused the legal team of the embattled cryptocurrency exchange (Sullivan & Cromwell) of doing the government’s bidding and suggested that they may be withholding crucial evidence which could help the defence.
Instead, they have only provided materials and information that further incriminate the former CEO.
“FTX’s legal advisors went to the government to accuse Mr. Bankman-Fried behind his back without knowing the full facts, and ultimately forced him to step down as C.E.O,” the young billionaire’s lawyers stated.
FTX Executives Testifies Against Bankman-Fried
While none of the aforementioned parties have responded to the accusations levied against them, it is worth noting that Ryan Salame, the co-CEO of FTX contributed to the woes of Bankman-Fried. Salame informed Bahamian regulators of an underground transfer which SBF made to FTX’s sister trading firm Alameda Research.
He further explained the modalities behind such transfers and this spurred the regulators to action.
At the same time, former FTX U.S. president Brett Harrison told a no-holds-barred tell-all story about the crypto exchange. He highlighted the fact that he had certain disagreements with SBF and his deputies which got to a breaking point and he had to leave the firm.