Benzinga - The trial against Sam Bankman-Fried, the co-founder of FTX (CRYPTO: FTT), might face considerable delays if additional charges are brought against him, according to statements from his legal representatives.
The additional charges could postpone the proceedings initially scheduled for October by a substantial amount of time, possibly even years.
Bankman-Fried was apprehended in December and later extradited from the Bahamas following the downfall of his crypto exchange.
Bankman-Fried maintained his innocence and refuted the allegations of wire fraud and money laundering.
The defense team raised concerns regarding the legitimacy of the additional charges imposed by the U.S. Department of Justice (DOJ) after his extradition.
The attorneys contended this could be in violation of the extradition agreement between the U.S. and the Bahamas.
In the legal documents, the defense stated, “Mr. Bankman-Fried is currently challenging the Government’s new application for consent in The Bahamas, as is his right, and such proceedings may well take many months, even years to be litigated.”
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The defense's stance was strengthened by a recent U.S. Supreme Court decision that narrowed the federal fraud laws' scope in a case from May.
This, along with other precedents, casted doubt on the claims Bankman-Fried committed fraud against a bank and those who had invested in his hedge fund, Alameda Research.
The defense's filing mentioned, “The Alameda lenders were not deprived of their contractual rights to collect the existing loans” due to Bankman-Fried’s conduct.
It also added, “We understand that Alameda’s lenders are vigorously asserting their rights in the FTX bankruptcy proceedings.”
Furthermore, the document claimed a recent Supreme Court verdict in May negated the validity of charges against Bankman-Fried for allegedly misrepresenting the purpose of an account he created for his firm, North Dimension.
The document asserted, “Bank-1’s right to control access to its bank accounts is no longer a valid property right.”
In contrast, the U.S. government claimed it had the authority to consult the Bahamas for consent to append extra charges.
The case is scheduled for a preliminary hearing this Thursday.
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