Sam Bankman-Fried, founder of crypto exchange FTX, could face a delay in fraud proceedings against him that could last months or years if extra charges are added, according to legal filings made on Monday. Bankman-Fried, who has pleaded not guilty to charges including wire fraud and money laundering, is currently on bail after being arrested in December and extradited from the Bahamas.
His lawyers argue that the U.S. Department of Justice’s attempt to add extra charges after his extradition may breach the treaty the U.S. has with the Bahamas, and that Bankman-Fried has the right to contest any such attempt in overseas courts. The defense case has been bolstered by the U.S. Supreme Court, which narrowed the scope of federal fraud laws in a May case involving bidding for state contracts.
The filing also stated that Bankman-Fried’s actions did not deprive those lending money to his hedge fund Alameda Research of their contractual rights, as the firm is being wound up. Furthermore, the Supreme Court’s May opinion invalidated charges that Bankman-Fried misrepresented the purpose of a bank account set up for his company North Dimension, as the bank’s right to control access to its accounts is no longer a valid property right.
An initial hearing has been set for Thursday.