FTX Legal Battle Intensifies: Prosecutors Oppose Motion to Dismiss Bankman-Fried Charges – Coinpedia Fintech News

On May 29, federal prosecutors fiercely opposed FTX founder Sam Bankman-Fried’s motion seeking the dismissal of the criminal charges leveled against him & urged a federal judge in Manhattan to reject it. Bankman-Fried, a prominent figure in the cryptocurrency world, has pleaded not guilty to 13 counts of fraud, conspiracy, unauthorized campaign contributions, and international bribery.

Prosecutors Hit Back at Bankman-Fried’s Arguments

Prosecutors have reacted to early May documents in which Bankman-Fried’s attorneys argued that the government overstepped its bounds in prosecuting Bankman-Fried and turned regulatory problems into crimes.

In a nearly 100-page brief, the prosecution declared that “these motions are meritless.” “The charges follow the pertinent statutes and the alleged misbehavior of the offender.

Perhaps, as per Judge Lewis Kaplan, the next oral argument date is 15th June.

Bankman-Fried Firmly Denies Wrongdoing Amid Prosecution’s Accusations

While Bankman-Fried has acknowledged certain shortcomings in FTX’s risk management protocols, he fully denies any wrongdoing or involvement in misappropriating funds. 

He made an effort to put himself out of the picture after his cryptocurrency-focused hedge fund, Alameda, went down. However, Caroline Ellison, the former CEO of Alameda, has pleaded guilty and is now cooperating with investigators, further intensifying the legal battle.

Additionally, he has claimed that some of the fraud allegations against him were founded on a notion that the U.S. Supreme Court rejected on May 11.

Legal Experts Doubt Charges Will Be Dropped

Legal experts have predicted that Bankman-Fried has little chance of having the charges dropped because the prosecution can show that his clients lost money. Before FTX filed for Chapter 11 protection in November, Bankman-Fried rode a surge in the value of digital currencies to a $26 billion net worth and rose to prominence as a political and philanthropic donor.

The outcome of this legal battle will not only shape the future of Sam Bankman-Fried’s career but also reverberate throughout the cryptocurrency community. 

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