FTX founder Sam Bankman-Fried leaves Manhattan federal courthouse in New York on February 16.John Minchillo/The Associated Press
Lawyers for Sam Bankman-Fried have presented meritless arguments in an attempt to convince a judge to throw out criminal charges alleging the FTX founder stole from investors in his multi-billion-dollar cryptocurrency fund, federal prosecutors said Monday.
In documents filed in Manhattan federal court, prosecutors responded to filings in early May that bankman-friedLawyers for insisted the United States overreached its case against Bankman-Fried, turning federal crimes into regulatory issues.
“These motions are without merit,” prosecutors wrote in a nearly 100-page filing. "The charges follow the relevant statutes and the defendant's alleged misconduct falls within the heart of what these statutes prohibit."
Bankman-Fried, 31, has been living with her parents in Palo Alto, California, after posting a $250 million personal recognition bond following her extradition from the Bahamas in December.
Bankman-Fried has pleaded not guilty to charges that he misled investors and looted FTX client deposits to make lavish real estate purchases, donate money to politicians and conduct risky transactions at Alameda Research, his fund trading firm. of cryptocurrency coverage. US attorney Damian Williams called it one of the biggest frauds in US history.
In March, new charges were added to the indictment alleging that Bankman-Fried violated the anti-bribery provisions of the Foreign Corrupt Practices Act by ordering the payment of $40 million in bribes to a Chinese official or officials to release $1 billion in cryptocurrencies. which was frozen in early 2021.
Requesting that all charges be dismissed, defense attorneys said eight charges in the original indictment were too vague and unspecific to proceed to trial and that additional charges were barred by a US-Bahamas Extradition Treaty. that prohibited charges not approved at trial. time of extradition.
However, prosecutors asked Judge Lewis A. Kaplan to let all charges proceed. They said the claims against the original charges were legally sufficient and permission is being sought from the Bahamas to allow the newer charges.
Prosecutors wrote that they expected Bankman-Fried's lawyers to argue at trial that their client was not involved in Alameda's day-to-day activities and was unaware that Alameda borrowed large sums from FTX to pay off his lenders.
“Defendant’s spending of embezzled funds on political donations is evidence of Defendant’s motive for defrauding FTX clients and investors: Defendant wanted access to capital that he could use, in part, for political donations that would polish his own image and would improve regulatory prospects for his business in the United States,” prosecutors wrote.
FTX went bankrupt in November when the global exchange ran out of money after the equivalent of a bank run. A trial has been tentatively set for the fall.
Bankman-Fried's lawyers did not respond Monday night to emailed requests for comment.
