Judge says arguments behind SBF’s motions to dismiss criminal charges are ‘moot or without merit’

Judge Refuses to Dismiss Most Charges Against Ex-FTX CEO

A federal judge presiding over the proceedings against ex-FTX CEO Sam Bankman-Fried (SBF) has refused to grant motions from his legal representatives to dismiss all but three of the criminal accusations against him.

In a June 27 filing to the United States District Court for the Southern District of New York, Judge Lewis Kaplan released a memorandum opinion on motions that sought to impede the discovery and disclosure of certain information regarding SBF’s criminal case. On May 8, Bankman-Fried’s legal team had filed motions to have the judge dismiss 10 of the 13 criminal counts SBF faced, leaving only conspiracy to commit commodities fraud, conspiracy to commit securities fraud and conspiracy to commit money laundering.

The judge deliberated over whether to drop 10 charges, which included wire fraud, conspiring to perpetrate wire fraud, and contraventions of campaign finance regulations. He overwhelmingly rejected the grounds for the motions, referring to precedent from the Second Circuit of the United States Court of Appeals.

Kaplan stated that dismissal of charges is a “remarkably rare” remedy, kept for extremely limited situations that involve fundamental rights. The Second Circuit has referred to dismissal as an “extreme sanction” that has only been accepted in the most extreme cases, “especially when serious criminal activity is involved”.

In his conclusion, the judge stated.

Sam Bankman-Fried to Stand Trial for Multiple Charges

Bankman-Fried will stand trial for the eight charges brought in December 2022, four more added in February 2023 as part of a superseding indictment, and a further charge in March 2023 concerning the ex-CEO allegedly bribing a Chinese government official. However, the last five charges will be addressed in a different trial set to start in March 2024, due to their introduction after SBF’s extradition from the Bahamas. His original trial is planned to begin in October.

Sam Bankman-Fried, the founder of FTX, now has two criminal trials to contend with.

The ex-CEO of FTX has denied all accusations. In December 2022, Caroline Ellison, the past CEO of Alameda Research, and Gary Wang, the co-founder of FTX, admitted their guilt in regard to related federal fraud allegations.

The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission are anticipated to file civil suits against SBF after the completion of his criminal proceedings. Additionally, the bankruptcy case of FTX is progressing in the District of Delaware.

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