FTX Co-Founder Sam Bankman-Fried to Face Trial on Original Charges, US Prosecutors Confirm

The criminal trial of Sam Bankman-Fried, co-founder of FTX, will proceed with the original eight charges leveled against him by United States prosecutors, according to recent developments.

In a court filing on June 14, the U.S. Department of Justice (DoJ) confirmed its intention to move forward with the trial on the charges initially brought against Bankman-Fried in December 2022.

The DoJ cited a motion filed by Bankman-Fried in the Bahamas, where he argued that several of the 13 charges he faced were not part of the original indictment, which formed the basis of his extradition.

Acknowledging that the resolution of this motion is expected to be time-consuming, the prosecutors expressed their readiness to proceed with the trial based on the counts contained in the original indictment.

The Supreme Court of the Bahamas also weighed in on June 14, stating that Bankman-Fried should have the opportunity to formally contest the new charges before the country can approve them.

After Bankman-Fried’s extradition, the DoJ unveiled four additional charges in February, relating to fraud and fraud conspiracy, followed by another charge in March accusing him of bribing Chinese officials.

Bankman-Fried, who founded and previously served as CEO of FTX, was initially charged in connection with the management of the now-defunct exchange. FTX experienced a liquidity crisis in November 2022, leading to its subsequent bankruptcy.

With estimated debts exceeding $3 billion, prosecutors allege that Bankman-Fried commingled customer funds and provided misleading information about FTX’s risk management practices, resulting in financial losses for investors and customers.