On Tuesday, a federal court denied Sam Bankman-Fried’s request to dismiss most of the U.S. government’s multibillion-dollar fraud lawsuit against the FTX cryptocurrency exchange founder.
Bankman-Fried, a 31-year-old former billionaire, will be tried on October 2 by Manhattan U.S. District Judge Lewis Kaplan.
Bankman-Fried was accused of diverting billions in FTX client cash to cover Alameda Research hedge fund losses.
They accused Bankman-Fried of deceiving investors and lenders and unlawfully donating to U.S. political campaigns in colleagues’ identities.
Bankman-Fried has pled not guilty and denied stealing funds, although FTX has poor risk management.
Bankman-Fried urged Kaplan to drop at least 11 of his 13 fraud and conspiracy charges in May. Bankman-Fried said some allegations based on a fraud basis that the U.S. Supreme Court invalidated last month.
The judge agreed with prosecutors that Bankman-Fried was not covered by the right to control.
“The defendant’s assertion that the indictment does not allege any ‘economic loss’ to FTX customers appears factually incorrect,” Kaplan ruled, adding that the monies were property. Bankman-Fried’s representative declined to comment.
Bankman-Fried also claimed that some accusations were presented without agreement from the Bahamas, where he was captured in December and deported to the U.S.
The Bahamas, where FTX was based, must consent to try individuals on accusations brought after their extradition.
This month, Kaplan announced a March 11 second trial on Bankman-Fried’s five extradition charges.
Prosecutors urged the Bahamas to agree to those allegations, which include conspiracy to bribe Chinese officials and commit bank fraud but did not know when it would.
