Lawyers representing FTX founder Sam Bankman-Fried said it may be necessary to delay the criminal trial of the former cryptocurrency exchange executive to give him more time to prepare his defense.
In a March 8 letter to U.S. District Judge Lewis Kaplan, attorneys for Bankman-Fried said they had not formally requested a date change but might need to because they were still waiting on "most Evidence was handed over to them, and more charges were brought against the FTX founder in late February.
The criminal trial, set to begin Oct. 2, will focus on fraud charges brought by the Department of Justice (DOJ). According to the letter, DOJ prosecutors hold evidence in the devices of Caroline Ellison, former CEO of FTX sister trading firm Alameda Research, and FTX co-founder Zixiao “Gary” Wang. Both Ellison and Wang have pleaded guilty to the fraud charges and are cooperating with the Justice Department.
Bankman-Fried's attorneys said they were also awaiting content from "computers belonging to two other former FTX/Alameda employees." They expect the evidence generated by the devices "will be substantial and critical to national defense." The letter also noted that the replacement indictment against Bankman-Fried was unsealed on February 22, increasing the number of charges from eight to 12 and adding new charges related to conspiracy and fraud.
Bankman-Fried pleaded not guilty to the initial eight charges brought against him in December 2022. Christian Everdell, one of Bankman-Fried's attorneys, wrote in the letter: "Depending on the volume of additional findings and the timing of production, it may be necessary to request a stay of the trial, which is currently scheduled to begin on October 2, 2023." “While we are not making such an application at this time, we wanted to note this issue for the Court now,” Everdell added.
Bankman-Fried is currently offering $250 million in bonds. He has been under house arrest at his parents' home in Palo Alto, California, and his online activities have been restricted. The trial timetable and bail conditions will be discussed at a hearing on Friday, March 10.
The FTX founders also face separate civil lawsuits related to fraud from the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) both of which were delayed until Bankman-Fried’s criminal trial.
