• SBF lawyers have filed pretrial motions to dismiss 10 out of the 13 charges against FTC founder Sam Bankman-Fried.
• The lawyers argued that the prosecutors charged their client hastily, without proper review of documents or evidence.
• They are asking for all but three of the charges—conspiracy to commit securities fraud, securities fraud, and conspiracy to commit money laundering—to be dropped.
Charges Against SBF Flawed
FTX founder Sam Bankman-Fried’s lawyers have filed pretrial motions to dismiss 10 out of the 13 charges against him, citing that they „suffer from multiple legal flaws“ or were „improperly premised.“ According to a memorandum of law filed by SBF’s lawyers, the government charged their client hastily without reviewing relevant evidence or documents. The lawyers are asking for all but three of the charges—conspiracy to commit securities fraud, securities fraud, and conspiracy to commit money laundering—to be dropped on this basis.
Commodities Fraud Charges
The lawyers also highlighted how other charges “suffer from multiple legal flaws” or were “improperly premised on a ‘right to control’ theory” recently considered invalid by the Solicitor General. Specifically, they said commodities fraud charges fail to satisfy statutory requirements and FinCEN rules undercut other charge allegations.
Conspiracy To Commit Securities Fraud
SBF is still facing one count of conspiracy to commit securities fraud and two counts of substantive securities fraud under Section 10(b) of the Securities Exchange Act and Rule 10b-5 thereunder. These alleged violations stem from FTX’s relationship with Tether (USDT).
SEC Lawsuit Costs at $200M
The filing comes shortly after Ripple pegged its SEC lawsuit costs at $200 million in a recent announcement about its plans for Dubai expansion. This follows Bittrex filing for US bankruptcy last month and Paxful reopening after a month-long shutdown earlier this week as well as OpenAI CEO launching his Worldcoin project wallet app.
In conclusion, it appears that most of the charges against FTX founder Sam Bankman-Fried lack enough evidence due to hasty charging from prosecutors who did not properly review relevant documents or evidence before filing them . As such, his lawyers have requested dismissal for all but three counts related conspiracy to commit securities fraud, securities fraud, and conspiracy to commit money laundering