Sam Bankman-Fried, the founder and former CEO of FTX, has disputed the indictment and urged a judge to dismiss the accusations against him. In a declaration to a federal court in Manhattan, Bankman-Fried’s lawyers claimed that the charges against him were a ‘rush to judgment’ by prosecutors. They mentioned the 2022 market meltdown as the primary cause of the collapse.
The lawyers went on to explain that due to haste, what was once a civil matter became a criminal one. “Rather than waiting for traditional civil and regulatory processes to take their ordinary course to address the situation, the Government jumped in with both feet, improperly seeking to turn these civil and regulatory issues into federal crimes,” according to the complaint.
It’s unclear whether the judge will consider lowering Bankman-Fried’s accusations. Since the exchange’s demise, the founder of FTX has dominated headlines, and his charges are numerous and serious. Fraud and bribery of Chinese officials are among the charges leveled against Bankman-Fried. He has pleaded not guilty to scamming consumers and is facing a total of 12 accusations.
Other charges include bank fraud and conspiracy to make illicit political contributions. He allegedly made these contributions via straw donors or corporate funding. This includes funds from FTX customers. Bankman-Fried could face more than 100 years in jail if convicted by the court. He is currently out on bond after paying $250 million.
Meanwhile, the Japanese unit of FTX has reopened, giving users of that exchange some hope. Customers can now withdraw their funds from the exchange, which marks the beginning of a lengthy recovery process.
To help consumers recover their payments, FTX sold the LedgerX technology to Miami International Holdings for $50 million. The platform was sold at a significant loss, but FTX requires all assets and finances available to reimburse clients.