Indicted FTX founder Bankman-Fried requests dismissal. “The FTX Debtors have worked so extensively with the Government, and are so enmeshed in the investigation, analysis, and strategy of the Government’s case, that they must be considered part of the ‘prosecution team’,” his attorneys argued.
FTX’s current leadership did not reply to a request for comment. Likewise, Manhattan’s U.S. Attorney spokesperson declined to comment.
Kaplan will hear arguments on June 15 after prosecutors answer to Bankman-Fried’s dismissal motion by May 29.
Bankman-Fried admits that FTX has poor risk management but denies stealing cash.
Three former close associates—former Alameda co-CEO Caroline Ellison, former FTX technology head Gary Wang, and former engineering chief Nishad Singh—pleaded guilty and agreed to assist with prosecutors.
Singh pleaded guilty to making personal political donations funded via Alameda transfers.
On Monday, Bankman-Fried’s attorneys argued Singh’s CC-1 donations did not violate election rules.
“The campaign finance allegations reveal, yet again, the consequences of the Government’s rush to indict Mr. Bankman-Fried,” his attorneys stated.
Since his December arrest in the Bahamas, where FTX was located, Bankman-Fried has mostly resided with his parents. After his arrest, he was extradited.
Stanford University law professors, his Palo Alto parents co-signed his $250 million bond.
On Monday, his lawyers argued in court papers that the campaign finance charge should be dismissed because it was not included on the surrender warrant signed by the Bahamas’ foreign affairs minister before Bankman-Fried’s extradition and that other charges, including bribery, were improperly brought after he was deported.
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