Breaking News
Investing Pro 0
💎 Access the Market Tools Trusted by Thousands of Investors Get Started

Bankman-Fried charges should not be tossed, prosecutors say

Published May 30, 2023 12:24AM ET Updated May 30, 2023 03:11PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: Former FTX Chief Executive Sam Bankman-Fried, who faces fraud charges over the collapse of the bankrupt cryptocurrency exchange, arrives at the Manhattan federal court in New York City, U.S. March 30, 2023. REUTERS/Amanda Perobelli

By Luc Cohen

NEW YORK (Reuters) - U.S. prosecutors on Monday said they opposed a motion by former cryptocurrency billionaire Sam Bankman-Fried to dismiss criminal charges accusing him of stealing billions of dollars from customers to plug losses at his hedge fund.

Bankman-Fried, the 31-year-old founder of FTX Trading, has pleaded not guilty in Manhattan federal court to 13 counts of fraud, conspiracy, making illegal campaign contributions and foreign bribery.

On May 8, Bankman-Fried urged U.S. District Judge Lewis Kaplan to dismiss most of the counts, saying prosecutors charged him in a "rush to judgment" after several prominent crypto companies went bankrupt in 2022, including his own Alameda Research.

In a filing late Monday, prosecutors with the U.S. Attorney's office in Manhattan described Bankman-Fried's motions as "meritless."

"The defendant's alleged misconduct falls within the heartland of what these statutes prohibit," prosecutors wrote

Kaplan will hear oral arguments on June 15.

Bankman-Fried has said FTX's risk management was subpar, but has denied stealing funds. He has sought to distance himself from the collapse of Alameda, the crypto-focused hedge fund he owned. Its former chief executive, Caroline Ellison, has pleaded guilty and agreed to cooperate with prosecutors.

He has also argued that some of the fraud charges he faces were based on a theory that the U.S. Supreme Court invalidated on May 11.

The theory, known as "right to control," centers around depriving a victim of economically valuable information rather than tangible property.

On Monday, prosecutors said their charges were not based on the "right to control" theory because Bankman-Fried was seeking to defraud his victims of tangible property.

"The ultimate object of the scheme was money," prosecutors wrote.

Bankman-Fried rode a boom in digital currency to a $26 billion net worth and became an influential political and philanthropic donor before FTX sought Chapter 11 protection in November.

Since his December extradition from the Bahamas, Bankman-Fried has largely been under house arrest at his parents' Palo Alto, California, home on $250 million bond. His trial is scheduled for Oct. 2.


Bankman-Fried had requested Kaplan throw out several charges that prosecutors brought after he was extradited including allegations he bribed officials in China to unfreeze Alameda assets there. He said the new charges should be dismissed because the Bahamas did not approve them.

Prosecutors said on Monday that they requested approval from the Bahamas for the later charges and would drop those charges if the Bahamas did not agree.

Prosecutors also pushed back on Bankman-Fried's request that Kaplan order them to turn over any documents in FTX's possession that could help the defense. Bankman-Fried said the company he once ran was part of the "prosecution team" because it was only handing over materials that helped the government.

Bankman-Fried charges should not be tossed, prosecutors say

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email