Former CEO of fraudulent FTX exchange Sam Bankman-Fried (SBF) could face two separate criminal trials, in the judge’s opinion.
The trial against Sam Bankman-Fried (SBF), the former businessman and central figure in the world of cryptocurrencies, is in full swing. On Thursday, a federal judge expressed his consideration of dividing the criminal charges in the trial against SBF, a proposal that came after prosecutors and defense reached a consensus. Both parties believe that the litigation in the Bahamas could cause a delay in the case.
SBF, who is facing a total of 13 criminal charges, all linked to the implosion of the FTX cryptocurrency exchange, has his trial scheduled to start on October 2 this year. The charges against him expanded once he was transferred to the US, including charges of conspiring to commit bank fraud and bribing a Chinese official.
Splitting Trial against SBF is Likely
The trial against SBF has taken a dramatic turn with the possibility of splitting into two parts. Defense attorneys argue that SBF’s transfer to the US was illegal, as it did not have the consent of the Bahamian government. Under the extradition treaty between the two countries, the host country must approve the charges prior to the transfer of custody, including any additional charges that are subsequently filed.
The Department of Justice has acknowledged that it cannot move forward with the most recent charges unless the Bahamian authorities consent. This week, a judge on the islands issued a temporary measure that prevents the authorities from responding to the US government’s request. In response, the prosecution is proposing to split the trial against SBF into two parts, a move that has so far met with opposition from the Justice Department.
A Split Trial: Fewer Charges, Less Time
Prosecutors in the case claim that the split trial against SBF would be shorter by a week or two if conducted split. Assessing this scenario, during a hearing this Thursday morning, the federal district judge of Manhattan, Lewis Kaplan, said that he would take time to evaluate it.
The rest of Thursday’s hearing focused on the arguments of SBF, who say most of the charges should be dismissed. It is important to note that the judge did not rule on these requests. Meanwhile, he pointed out that it is unlikely to dismiss any charge until the trial is carried out. He stressed that the preliminary stages are the main legal obstacle to dismissing charges.
The businessman’s defense team has a significant number of arguments that suggest that the accusations are improper. They allege that some of the charges are invalid in light of a Supreme Court decision last May. It substantially reduces the scope of the federal wire fraud statute, explains the Wall Street Journal.
On the other hand, they claim that the government is looking for a way to turn into a criminal case something that would have been resolved through the civil application. For its part, the prosecutor’s office ensures that the case is legally sound and meets what is necessary in terms of requirements. This is how the latest on the trial against SBF is presented and now everything is in the hands of Kaplan.
By Audy Castaneda
