FTX founder Sam Bankman-Fried asked a New York federal judge on Monday night to dismiss all criminal charges brought against him by federal prosecutors following the sudden collapse of his cryptocurrency exchange last year.
FTX founder Sam Bankman-Fried leaves Manhattan Federal Court after his arraignment and bail ... [+]
In multiple filings made with the Southern District of New York federal court, Bankman-Fried’s lawyers argued that the federal government’s actions against him were “dramatic” and turned “civil and regulatory issues into federal crimes.”
The defense argues that the collapse of FTX was the result of the so-called “crypto winter” of 2022, where the prices of several popular cryptocurrencies nosedived while others outright collapsed.
The filing claims that the initial federal indictment had “vague and non-specific charges,” adding that more counts which were added later—including a campaign finance violation charge—contravene the extradition agreement between the U.S. and the Bahamas, where Bankman-Fried was arrested.
In total, the FTX founder’s defense team is seeking the dismissal of 10 of the 13 charges made against him.
The filing also takes aim at FTX’s debtors and CEO John Ray—who is overseeing the bankrupt company’s restructuring—alleging that they have been withholding crucial evidence that may be helpful for the defense while complying with the prosecution’s request for “targeted material that the Government believes will be inculpatory.”
The filing alleges that Ray and FTX’s debtors have: “acted as a public mouthpiece for the government by continuing to make disparaging remarks about Mr. Bankman-Fried in the FTX bankruptcy proceedings, and have assumed the role of prosecutor by publicly labeling him ‘the villain.’”