By Luke Cohen
NEW YORK (Reuters) – U.S. prosecutors mentioned on Monday they oppose a movement by former cryptocurrency billionaire Sam Bankman-Fried to dismiss prison fees accusing him of stealing billions {dollars} to purchasers to make up for his hedge fund’s losses.
Bankman-Fried, the 31-year-old founding father of FTX Buying and selling, pleaded not responsible in Manhattan federal court docket to 13 counts of fraud, conspiracy, unlawful marketing campaign contributions and overseas bribery.
On Might 8, Bankman-Fried urged U.S. District Choose Lewis Kaplan to dismiss most fees, saying prosecutors had charged him in a “rush to judgment” after a number of high crypto companies plan went bankrupt in 2022, together with its personal Alameda analysis.
In a Monday night time submitting, prosecutors with the U.S. Lawyer’s Workplace in Manhattan known as Bankman-Fried’s requests “with out advantage.”
“The accused’s alleged misconduct goes to the guts of what these legal guidelines prohibit,” prosecutors wrote.
Kaplan will hear oral argument on June 15.
Bankman-Fried mentioned FTX’s threat administration was poor, however denied stealing funds. He sought to distance himself from the collapse of Alameda, the crypto-focused hedge fund he owned. Its former chief govt, Caroline Ellison, pleaded responsible and agreed to cooperate with prosecutors.
He additionally argued that a few of the fraud fees he faces had been based mostly on a concept that the US Supreme Courtroom struck down on Might 11.
The idea, often known as the “proper to regulate”, entails depriving a sufferer of economically useful info fairly than tangible property.
On Monday, prosecutors mentioned their fees weren’t based mostly on the “proper to regulate” concept as a result of Bankman-Fried was searching for to defraud his victims out of tangible property.
“The final word object of the scheme was the cash,” prosecutors wrote.
Bankman-Fried loved a digital foreign money increase to achieve a internet value of $26 billion and have become an influential political and philanthropic donor earlier than FTX filed for Chapter 11 safety in November.
Since his extradition from the Bahamas in December, Bankman-Fried has been largely underneath home arrest at his dad and mom’ dwelling in Palo Alto, Calif., on $250 million bond. His trial is scheduled for October 2.
PROSECUTORS SEEKING BAHAMAS WAIVER
Bankman-Fried had requested Kaplan to dismiss a number of fees introduced by prosecutors after his extradition, together with allegations that he bribed officers in China to unfreeze Alameda property there. He mentioned the brand new fees needs to be thrown out as a result of the Bahamas had not authorized them.
Prosecutors mentioned Monday that they had sought Bahamian approval for subsequent fees and would drop these fees if the Bahamas didn’t agree.
Prosecutors additionally denied Bankman-Fried’s request for Kaplan to organize them to show over any paperwork in FTX’s possession that may assist the protection. Bankman-Fried mentioned the agency he as soon as ran was a part of the “prosecution workforce” as a result of it solely turned over paperwork that helped the federal government.
