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FTX Co-founder Sam Bankman-Fried to Face Double Trials for Alleged Mismanagement of Crypto Exchange

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In a significant development, the criminal charges against Sam Bankman-Fried, co-founder of FTX, have split, leading to two separate trials. This trial aims to investigate alleged mismanagement of popular cryptocurrency exchanges. Bankman-Fried, who was once the CEO of FTX, is now facing a total of 13 counts of fraud, conspiracy to fraud and bribery. The trial was originally scheduled to begin on October 2, but the recent ruling from United States District Court Judge Lewis Kaplan has split the five charges into a second trial, which is now set for March 11, 2024.

Background:

The legal proceedings against Bankman-Fried began when he was extradited to the United States in December 2022, facing eight charges. Subsequently, additional indictments in February and March 2023 raised the total indictments to 13. Interestingly, the split indictments occurred because the Department of Justice (DOJ) requested an acquittal from Bahamian authorities to pursue Bankman-Fried on the five additional charges that were dropped afterward. extradition.

Trial Split:

Bankman-Fried’s defense team disputed the validity of the charges made after his extradition, arguing that he could not be tried for crimes committed after extradition. However, on June 14, lawyers for the DOJ decided to go ahead with the original eight charges they had brought against him. This decision was made to avoid possible delays caused by pending approval of a motion filed by Bankman-Fried in the Bahamas. As a result, the upcoming trial in March will focus exclusively on charges related to conspiracy to bribe, conspiracy to operate an unlicensed money transfer business, conspiracy to bank fraud, and derivatives and securities fraud.

Nature of Fees:

Apart from the charges mentioned above, Bankman-Fried faces charges of wire fraud, derivatives and securities fraud, conspiracy and money laundering. These allegations include his involvement with FTX and Alameda Research. The hearing will thoroughly investigate these grave allegations, highlighting the subtleties of alleged mismanagement and fraudulent activity at both entities.

The legal proceedings against Sam Bankman-Fried, the co-founder of FTX, have taken an interesting turn with the split of the charges into two separate trials. With a total of 13 charges, including fraud, fraud conspiracy, bribery and various financial crimes, Bankman-Fried’s alleged mismanagement of the cryptocurrency exchange will be thoroughly examined. The trial, which was originally scheduled to begin on October 2, will now take place in several stages, with a second trial starting on March 11, 2024. As the legal proceedings progress, it is hoped this trial will shed light on the complex allegations surrounding Bankman. -Fried’s involvement with FTX and Alameda Research, clarifies allegations of fraud, conspiracy and money laundering.

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