FTX co-founder Sam Bankman-Fried files motions to dismiss all but three charges against him

Sam Bankman-Fried, who has long denied stealing from customers of his FTX cryptocurrency exchange, has asked a judge to bring criminal charges against him over the collapse of the now-bankrupt FTX.

In a Monday filed in Manhattan federal court, Bankman-Fried’s lawyers said many cryptocurrency exchanges collapsed in a broad market crash in 2022, and prosecutors hurriedly charged their client in a “rush to judge.”

“Instead of waiting for the traditional civil and regulatory processes to take their normal course to address the situation, the government jumped in and tried to improperly turn these civil and regulatory issues into federal crimes.” his lawyers wrote.

Of the charges against him, the three that he is not contesting are conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering.

Bankman-Fried, a 31-year-old ex-billionaire, has been largely confined to his parents’ home since his arrest in December in the Bahamas, where he lived and where FTX was based.

He was extradited to the United States just over a week after his arrest.

FTX imploded after a spate of customer withdrawals in the wake of reports that it had been mixing assets with Alameda Research, Bankman-Fried’s crypto-focused hedge fund.

Federal prosecutors in Manhattan said Bankman-Fried stole billions of dollars in FTX funds from customers to cover losses at Alameda, buy real estate and make political contributions through an illegal straw donor program. They have also accused him of bribing Chinese officials.

Prosecutors have until May 29 to respond to Bankman-Fried’s resignation request, and U.S. District Judge Lewis Kaplan will hear arguments on June 15.

Bankman-Fried sparked an explosion of bitcoin and other digital assets to an estimated $26.5 billion in wealth, according to Forbes magazine, but his fortune largely evaporated when FTX collapsed in November.

The Massachusetts Institute of Technology graduate has pleaded not guilty to 13 counts of fraud and conspiracy.

He has acknowledged that FTX had inadequate risk management, but denies stealing money, and has attempted to distance himself from FTX’s day-to-day operations.

Three former close associates — former Alameda co-chief executive Caroline Ellison, former FTX technology chief Gary Wang and former FTX engineering chief Nishad Singh — have all pleaded guilty and agreed to cooperate with prosecutors.

Bannkman-Fried’s trial is scheduled for October 2 after he pleaded not guilty to fraud and campaign finance charges in March.

That same month, it was revealed how Bankman-Fried secretly transferred $2.2 billion from FTX to his personal account and $1 billion to five members of his inner circle before the cryptocurrency exchange collapsed, according to bankruptcy courts.

His parents, who live in Palo Alto, California, are law professors at Stanford University and co-signed his $250 million bail.

Bankman-Fried has limited access to technology after prosecutors warned he could tamper with witnesses.