Defense attorneys for Sam Bankman-Fried allege US authorities overstepped the mark in prosecuting the former FTX CEO, arguing that regulatory violations should not be prosecuted as federal crimes.
SBF lawyers say charges are not federal crimes
Bankman-Fried was arrested in the Bahamas on December 12, 2022, following the collapse of FTX about four weeks prior. Prosecutors have charged the former CEO with eight counts, including conspiracy to commit money laundering, customer and lender wire fraud, commodity and security fraud, and separate wire fraud. on customers and lenders.
As the case unfolded and more details emerged, he was later charged with five additional federal indictments, including bribing Chinese officials and violating campaign finance laws. regarding political donations, bringing the total number of charges against him to thirteen.
However, federal court documents filed May 29 show that defense attorneys for Bankman-Fried sought to dismiss the case because their client’s actions were regulatory issues rather than federal crimes, according to the Washington Post.
Additionally, the Bankman-Fried team argued that the initial eight charges filed in December 2022 were “too vague and unspecific” to constitute a trial and that subsequent additional charges were void because the charges were not were not approved by the Bahamas at the time. of extradition.
Prosecutors call defense motions unfounded
In a near 100 page folderprosecutors called the defense team’s motions “baseless,” saying the charges against him were federal crimes.
“The charges follow the relevant laws and the accused’s alleged misconduct goes to the heart of what those laws prohibit.”
A separate court file by prosecutors addressed the defense team’s point on extradition rules laying bare subsequent charges. He said the treaty agreement between the United States and the Bahamas does not limit new offenses after extradition.
“The treaty only expressly reflects an agreement between the two countries that the extradited person will not be ‘detained, tried or punished’ without the consent of the executive authority of the extraditing country.”
As such, according to the treaty agreement between the two countries, “the new charges cannot violate the rule of specialty.”
The trial is expected to take place in the fall.
SBF defense attorneys insist regulatory issues are not federal crimes appeared first on CryptoSlate.