Criminal charges against FTX co-founder Sam Bankman-Fried have been split, with the former CEO now facing two separate trials for alleged mismanagement of the cryptocurrency exchange.
Bankman-Fried faces 13 total charges related to fraud, conspiracy to fraud and bribery. A trial on all charges is scheduled to begin on October 2. Five of the charges will now go to a second instance on March 11, 2024, according to a June 15 ruling by US District Court Judge Lewis Kaplan. Initially, the FTX founder was extradited to the US on eight charges in December 2022, with further indictments adding five more charges in February and March 2023.
The charges were split after Justice Department prosecutors asked Bahamian authorities to drop the trial on five additional charges imposed on Bankman-Fried after his extradition from the country.
Lawyers for the FTX co-founder have sought to dismiss the charges, saying he cannot stand trial on the charges post-extradition. On June 14, Justice Department lawyers said that if the courts were to wait for the approval of Bankman-Fried's motion filed In the Bahamas, they would proceed to try Bankman-Fried's original eight charges against him, citing the potentially lengthy process.
A new trial in March will focus on charges of bribery conspiracy, conspiracy to operate an unlicensed money transmitter business, conspiracy to commit bank fraud, and derivatives and securities fraud. Other charges relate to various wire, derivatives, and securities fraud and conspiracy alleged to have been conducted at FTX and Alameda Research, as well as money laundering charges.
