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Attorneys of FTX founder Sam Bankman-Fried have filed motions to dismiss the fraud charges against him made by the US government. Bankman-Fried is facing 13 charges, including fraud and bribery, to which he has pleaded not guilty.
The lawyers have urged the judge to dismiss most of the charges, citing that the government has failed to properly explain the offenses committed by the former CEO of the now-bankrupt crypto exchange, FTX.
Prosecutors allege that Bankman-Fried used FTX customer deposits to fund risky bets at his hedge fund, Alameda Research, and to make contributions to American politicians. Before its collapse in November, FTX was one of the most respected and recognized crypto platforms.
Bankman-Fried, who is 31 years old, is currently under house arrest on a $250 million bond at his parents’ home in Palo Alto, California. He has admitted to mishandling his business but denies committing fraud.
The government has two weeks to respond to the motions filed by Bankman-Fried’s lawyers, and the next hearing has been scheduled for June 15, where Bankman-Fried is expected back in court. Three of Bankman-Fried’s former business partners, Gary Wang, Caroline Ellison, and Nishad Singh, have already pleaded guilty to numerous charges and are cooperating with investigators.
If Bankman-Fried is convicted on all counts, he could face more than 155 years in prison. A trial has been scheduled for October.
Bankman-Fried’s legal team argues that the government has not provided sufficient evidence to back up the charges against him. The defense is pushing for a dismissal of most of the charges, which they claim are based on hearsay and speculation.
The case has drawn significant attention within the cryptocurrency industry, where Bankman-Fried was a prominent figure. His success with FTX and Alameda Research had made him a billionaire and a rising star in the sector.
However, the allegations against him have tarnished his reputation and have cast a shadow over his achievements. If convicted, Bankman-Fried could face severe consequences that could include a lengthy prison sentence and the forfeiture of his assets.
The hearing on June 15 will be a crucial milestone in the case as it will determine whether the charges against Bankman-Fried will be dismissed or will proceed to trial in October.
Meanwhile, the cryptocurrency community continues to closely monitor the case, which could have significant implications for the sector as a whole. The outcome could set a precedent for how regulators approach the emerging market, which has experienced significant growth in recent years.
