Sam Bankman-Fried Convicted of 8 Crimes by DOJ

Prosecutors have accused the defendants of eight different charges, which include conspiring to commit wire fraud against a customer, committing wire fraud against a customer, conspiring to commit wire fraud against a lender, committing wire fraud against a lender, conspiring to commit commodity fraud, conspiring to commit securities fraud, conspiring to commit money laundering, conspiring to defraud the United States, and violating financial laws related to election offenses.

“In light of the uncertainty concerning when The Bahamas will render a decision with respect to specialty, and to simplify the proof at trial and decrease the burden of trial preparation on the defendant, the Government is prepared to proceed to trial as scheduled on the counts contained in the original Indictment.”

In February and March 2023, five of the original thirteen charges against SBF were replaced by new indictments. Yesterday, it was reported that a court in the Bahamas temporarily barred the government from consenting to additional criminal proceedings following SBF’s extradition to the United States.

Prosecutors have proposed that the trial for the new allegations occur in the first quarter of 2024. Current plans call for Bankman-Fried’s trial to begin in October.

U.S. federal prosecutors in Manhattan announced last month that they would abandon five counts of foreign bribery, bank fraud, and conspiracy against SBF if the Bahamian government did not concur. These allegations were not initially included in the eight-count indictment filed against SBF in December, which focused on the FTX incident from the previous month, but were added after his extradition.

If SBF’s attorneys decide to add new charges, the SBF fraud lawsuit could be delayed for an extended period. The legal team for Bankman-Fried argued that the allegations added by the Department of Justice (DOJ) after his extradition may violate the U.S. treaty with the Bahamas and that he has the right to contest any attempt to include them in foreign courts.

In a May case involving state contract tendering, the U.S. Supreme Court recently limited the application of federal fraud laws. The attorneys for Bankman-Fried contend that this ruling, in conjunction with other case law, undermines SBF’s claim that it defrauded banks and borrowers on behalf of Alameda Research. They contend that these individuals may be able to recoup their funds if the company goes bankrupt.