• Federal Judge Lewis Kaplan has rejected Sam Bankman-Fried’s (SBF) request to dismiss the criminal charges filed against him. 
• The legal team for Fried sought to have 10 of the 13 counts brought against him dismissed by the judge.

In light of newly revealed details about FTX fraud, Federal Judge Lewis Kaplan has rejected Sam Bankman-Fried’s (SBF) request to dismiss the criminal charges filed against him. SBF, the exchange’s founder, had sought to have the charges dismissed, but the judge ultimately denied his motion.

Bankman-Fried and his legal team had recently requested the dismissal of all charges except three, arguing that the court had made a hasty judgment. However, after carefully reviewing the arguments presented by both parties, Judge Kaplan concluded that the arguments were either irrelevant or lacked merit.

The legal team for Bankman-Fried sought to have 10 of the 13 counts brought against him dismissed by the judge. If successful, Bankman-Fried would have been exempt from accusations of conspiring to commit money laundering, securities fraud, and commodities fraud. Judge Kaplan nevertheless deemed the motion to drop the charges, including wire fraud, conspiracy to commit wire fraud, and breaking the statute governing campaign finance, unjustifiable.

Furthermore, Bankman-Fried could face over 100 years in prison if convicted and given the maximum sentence on all counts, notably the fraud-related charges. These charges stem from allegations that he and other FTX executives utilized billions in customer assets for their unsuccessful investments. Bankman-Fried is currently under house arrest, confined to his parent’s home.

While the criminal trial is scheduled for October, Bankman-Fried’s lawyers have requested a delay in the proceeding.

Judicial Discretion in Dismissal Requests

Judge Kaplan, overseeing the FTX case since November of the preceding year when the cryptocurrency exchange declared bankruptcy, reached his decision by following the guidance the U.S. Court of Appeals for the Second Circuit offered. According to Kaplan’s assessment, the dismissal of charges is an exceptional measure reserved solely for highly restricted situations involving fundamental rights. He emphasized that the Second Circuit has upheld dismissal as an extreme sanction, applicable only in extraordinary cases, particularly those concerning severe criminal behavior.

In addition, Judge Kaplan released a memorandum opinion concerning motions that aimed to enable Bankman-Fried’s legal team to withhold specific information regarding the ongoing case. By rejecting the motion to dismiss most of the charges, the judge ensured that Bankman-Fried would be confronted with all the allegations against him. These include the eight charges filed in December 2022, the four charges from earlier this year, and one charge alleging the bribery of a Chinese government official.

Uphill Battle for Bankman-Fried’s Defense in Trial

The rejection of Bankman-Fried’s request to dismiss most charges represents a significant setback for the young billionaire and the FTX Derivatives Exchange. The case against Bankman-Fried revolves around accusations of orchestrating a fraudulent scheme amounting to billions of dollars. It is a high-profile matter that has garnered considerable attention within the cryptocurrency industry and beyond.

With the charges now proceeding to trial, Bankman-Fried and his legal team face the challenge of presenting a strong defense against the allegations. The trial’s outcome will have extensive consequences for Bankman-Fried’s personal and professional reputation and the broader perception of accountability within the cryptocurrency sector.

The rejection of Bankman-Fried’s request to dismiss most charges represents a significant setback for the young billionaire and the FTX Derivatives Exchange. The case against Bankman-Fried revolves around accusations of orchestrating a fraudulent scheme amounting to billions of dollars. It is a high-profile matter that has garnered considerable attention within the cryptocurrency industry and beyond.

With the charges now proceeding to trial, Bankman-Fried and his legal team face the challenge of presenting a strong defense against the allegations. The trial’s outcome will have extensive consequences for Bankman-Fried’s personal and professional reputation and the broader perception of accountability within the cryptocurrency sector.