Meanwhile, the defunct FTX continues to pursue various options to recover customer funds.
Former FTX CEO Sam Bankman-Fried has on Monday filed an ex parte motion before a Federal Court. The motion, as filed through the office, seeks to dismiss 10 out of 13 US charges against the former CEO. The remaining charges include conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering. Interestingly, the former CEO previously pled ‘Not guilty” to all the allegations laid against him.
According to Bankman-Fried’s attorneys, the government has failed to establish the offenses the former CEO is accused of. Consequently, the attorneys urged the judge to dismiss the cases summarily. The government has two weeks to respond to the motions from Bankman-Fried’s lawyers. The next case is due to be heard in court by June 15.
Is the Former FTX CEO Guilty or Not?
Before its collapse, FTX was one of the largest cryptocurrency exchanges globally. That was until Bankman-Fried was accused of mismanaging FTX customer deposits by using it to finance risky bets in Alameda Research. The firm was also accused of using company funds to funnel contributions to American politicians.
In his defense, SBF acknowledged that he mishandled customer deposits but rejected the fraud charges. Interestingly, SBF’s former business partners, Gary Wang, Caroline Ellison, and Nishad Singh, have all pleaded guilty to numerous charges.
While he awaits trial, SBF is under house arrest in Palo Alto, California on a $250 million bond. Should the charges prove true, SBF faces between 115 and 155 years in prison. The criminal trial has been scheduled for October.
Defunct FTX May Restart Operations Next Year
Meanwhile, the defunct FTX continues to pursue various options to recover customer funds. As of April 12, the firm had recovered $7.3bn (£5.8bn) in customer funds, according to The Guardian. While maintaining that the actual fund shortfall is unknown, Andy Dietderich said:
“The situation has stabilized, and the dumpster fire is out.”
Moving on, the company will assess the possibility of restarting the exchange by the end of June. Plans to kickstart the company operations from early next year may also materialize, according to the company lawyers.
An experienced writer with practical experience in the fintech industry. When not writing, he spends his time reading, researching or teaching.
