- The DOJ has decided to try SBF only on the original eight charges.
- Conflicts over jurisdiction with the Bahamas played a role in the decision.
- The DOJ could change its approach when it gets a green light from the Bahamas.
The ongoing FTX legal saga took an unexpected turn favoring founder Sam Bankman-Fried. Some of SBF’s appeals to dismiss a part of the Department of Justice’s (DOJ)’s 13 charges against him were successful.
On June 14, prosecutors agreed to try SBF only on the original eight charges brought against him in December 2022. These charges include conspiracy to commit wire fraud against a customer, wire fraud against a customer, and conspiracy to wire fraud against a lender, among others. However, the DOJ could re-litigate the other five charges once it gets approval from the Bahamas.
DOJ’s Retrenchment and SBF’s Bahamas Extradition
This decision came after a series of pretrial motions by SBF’s legal team, which sought to dismiss several charges. The defense argued that five of the 13 charges came after SBF’s extradition from the Bahamas.
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SBF was arrested in the Bahamas and extradited to the U.S. last year. Under international law, the local government had to agree to the additional charges before SBF could be tried.
On Tuesday, June 13, a Bahamas court blocked the government from agreeing to these additional charges until SBF’s defense team could fight against that approval. This has created a legal complication for the DOJ. The prosecution now has to set the five additional charges aside until they get approval from the Bahamas.
FTX Fraud Case From the Start to Now
The legal proceedings against Sam Bankman-Fried, the founder and former CEO of FTX, have been a focal point since its start. The U.S. Department of Justice (DOJ) initially brought eight charges against Bankman-Fried in December 2022, including wire fraud, securities fraud, and money laundering.
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The charges stemmed from allegations that Bankman-Fried and his company, FTX, had engaged in fraudulent activities that misled customers and investors. The DOJ accused Bankman-Fried of multiple counts of wire fraud and conspiracy to commit wire fraud and securities fraud. Charges also included money laundering and unlawful political contributions.
In February and March 2023, the DOJ brought five additional charges as superseding indictments, including bank fraud, operating an unlicensed money transmitter, and bribery. However, SBF’s legal team contested these additional charges. This led to a complex legal battle that involved the Bahamas, where SBF was extradited from.
On the Flipside
- The Bahamas government has collaborated with US requests in the FTX fraud case.
- SBF still faces decades in prison for the original eight charges if the jury issues a guilty verdict.
Why This Matters
Read about the allegations against Sam Bankman-Fried:
Sam Bankman-Fried and Insiders Took $3.2B from FTX: Filings
Read about Binance addressing rumors of market manipulation:
More Binance FUD? CZ Denies Rumors of Selling Bitcoin for BNB
