Share this article
Sam Bankman-Fried's Bahamas Litigation May Take ‘Months or Years,’ His Counsel Says
The FTX founder’s lawyers argue that a new Supreme Court judgment shows that he has not committed fraud.
Jun 13, 2023, 6:23 a.m.
Make us preferred on Google
Fraud proceedings against FTX founder Sam Bankman-Fried could be delayed by “months or years” if extra charges are added, potentially running past a planned October trial date, his lawyers have said in legal filings made on Monday.
Bankman-Fried is currently on bail after being arrested in December and extradited from the Bahamas after the collapse of his crypto empire, which had filed for bankruptcy in November. He has pleaded not guilty to charges including wire fraud and money laundering.
STORY CONTINUES BELOW
His lawyers argue that charges added by the U.S. Department of Justice after his extradition may breach the treaty the U.S. has with the Bahamas – and that he has the right to contest any attempt to add them in overseas courts.
“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,” the filing said.
The defense case has been emboldened by the U.S. Supreme Court, which narrowed the scope of federal fraud laws in a May case involving bidding for state contracts.
This and other case-law weakens arguments that Bankman-Fried defrauded a bank and those lending money to his hedge fund Alameda Research, who could in principle still get their money back as the firm is wound up, his lawyers argue.
“The Alameda lenders were not deprived of their contractual rights to collect the existing loans” by Bankman-Fried’s actions, the document said. “We understand that Alameda’s lenders are vigorously asserting their rights in the FTX bankruptcy proceedings.”
“Bank-1’s right to control access to its bank accounts is no longer a valid property right” after the Supreme Court’s May opinion, invalidating charges that Bankman-Fried misrepresented the purpose of a bank account set up for his company North Dimension, the document said.
In May filings, the U.S. government argued it could simply ask the Bahamas for permission to add extra charges, and that it had jurisdiction as the impact of his actions were felt in U.S. crypto markets.
An initial hearing has been set for Thursday.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Senate Agriculture's crypto market structure draft peppered with Democrat pitches
The latest draft of the major crypto legislation has begun to be targeted with amendments as the Senate Agriculture Committee approaches its hearing next week.
What to know:
- Proposed amendments to the Senate Agriculture Committee's crypto market structure bill have been posted, and the Democrats filing the pitches are seeking to push a number of the points they've sought over months of negotiation.
- Democrat amendments include proposals for banning senior government officials from profiting off of crypto interests and a demand for filling the Commodity Futures Trading Commission before new rules can be put in place.
- The committee's markup hearing for the bill is currently scheduled for next week, though a winter storm threatens the U.S. capital.
Top Stories
