In a recent development, United States prosecutors have confirmed that FTX co-founder Sam Bankman-Fried will face the initial eight charges that were brought against him. The decision comes despite a series of additional charges that have been unsealed since Bankman-Fried’s extradition from the Bahamas.
The U.S. Department of Justice (DoJ) addressed a letter to district judge Lewis Kaplan, indicating their intent to try Bankman-Fried on the eight charges originally levied in December 2022. The charges center around Bankman-Fried’s management of the now-failed crypto exchange FTX.
The DoJ lawyers pointed to a motion filed by Bankman-Fried in the Bahamas, where he argued that many of the additional 13 charges he faced were not part of the original indictment. This indictment served as the basis for his extradition from the country.
Following Bankman-Fried’s extradition, the DoJ had unsealed four more charges in February related to fraud and fraud conspiracy, and an additional charge in March alleging bribes to Chinese officials. However, the prosecutors are prepared to proceed to trial as scheduled on the counts contained in the original indictment, citing the likely lengthy process of litigation for the additional charges.
FTX, the crypto exchange co-founded by Bankman-Fried, is estimated to owe creditors over $3 billion. The prosecutors allege that Bankman-Fried mishandled customer funds and misled investors about FTX’s risk management practices, leading to substantial losses for investors and customers.
In connection with the collapse of the exchange, Caroline Ellison, the former CEO of sister company Alameda Research, and FTX co-founder Gary Wang have both pleaded guilty to fraud charges.
Also Read: Bahamas Court Rules in Favor of SBF in US Extradition Talks
As the case continues to unfold, the crypto world watches closely, awaiting further developments in the trial of one of its key figures, Sam Bankman-Fried.
