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SBF Faces Two Separate Trials
Former chief executive of FTX, Sam Bankman-Fried, is anticipated to stand trial for 13 criminal counts across two distinct proceedings, scheduled for October 2023 and March 2024 respectively.
Motions to Dismiss Criminal Charges Denied
Sam Bankman-Fried's (SBF) attempt to have a majority of criminal charges against him dismissed has been thwarted. The presiding federal judge in the case refused his legal team's request to discard all but three criminal accusations.
In a legal document submitted on June 27 in the United States District Court for the Southern District of New York, Judge Lewis Kaplan penned a memorandum opinion on motions aimed at ceasing the discovery and disclosure of certain data pertinent to SBF's criminal case. Bankman-Fried's legal counsel had previously filed motions on May 8 with the intent to persuade the judge to dismiss 10 out of 13 criminal counts, leaving only conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering.
Judge Kaplan’s Considerations and Ruling
Judge Kaplan deliberated over the dismissal of 10 charges, including wire fraud, conspiracy to commit wire fraud, and breaches of campaign finance laws. He predominantly rejected the grounds for the motions, referring to established judgments from the U.S. Court of Appeals for the Second Circuit.
Dismissing charges is a ‘remarkable remedy’ only applied in severely restricted situations that involve fundamental rights, expressed Kaplan. He further noted that the Second Circuit views dismissal as an ‘extreme punishment’ that has been confirmed 'solely in very confined and serious circumstances', and should be ‘kept for truly severe cases,’ particularly where major criminal behavior is implicated.
In his closing remarks, the judge stated:
“After considering all the parties' arguments, those not addressed herein are either redundant or lack validity."
As a result, SBF is set to face all eight charges that were initially brought forth in December 2022, plus four added in February 2023 via a superseding indictment, and one more in March 2023. The latter five counts, one of which involves allegations of the former CEO bribing a Chinese government official, will be dealt with in a separate trial slated for March 2024 due to their post-extradition addition from the Bahamas. The first trial is expected to kick off in October.
SBF has denied all charges. In December 2022, former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang pleaded guilty to similar federal fraud charges.
In the wake of his criminal trials, the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission are predicted to file civil lawsuits against SBF. Concurrently, FTX's bankruptcy case remains under review in the District of Delaware.
