Sam Bankman-Fried's Bahamas Litigation May Take ‘Months or Years,’ His Counsel Says

Fraud proceedings against FTX laminitis Sam Bankman-Fried could beryllium delayed by “months oregon years” if other charges are added, perchance moving past a planned October proceedings date, his lawyers person said successful legal filings made connected Monday.

Bankman-Fried is presently connected bail aft being arrested successful December and extradited from the Bahamas aft the illness of his crypto empire, which had filed for bankruptcy successful November. He has pleaded not blameworthy to charges including ligament fraud and wealth laundering.

His lawyers argue that charges added by the U.S. Department of Justice aft his extradition whitethorn breach the pact the U.S. has with the Bahamas – and that helium has the close to contention immoderate effort to adhd them successful overseas courts.

“Mr. Bankman-Fried is presently challenging the Government’s caller exertion for consent successful The Bahamas, arsenic is his right, and specified proceedings whitethorn good instrumentality galore months, adjacent years to beryllium litigated,” the filing said.

The defence lawsuit has been emboldened by the U.S. Supreme Court, which narrowed the scope of national fraud laws successful a May lawsuit involving bidding for authorities contracts.

This and different case-law weakens arguments that Bankman-Fried defrauded a slope and those lending wealth to his hedge money Alameda Research, who could successful rule inactive get their wealth backmost arsenic the steadfast is coiled up, his lawyers argue.

“The Alameda lenders were not deprived of their contractual rights to cod the existing loans” by Bankman-Fried’s actions, the papers said. “We recognize that Alameda’s lenders are vigorously asserting their rights successful the FTX bankruptcy proceedings.”

“Bank-1’s close to power entree to its slope accounts is nary longer a valid spot right” aft the Supreme Court’s May opinion, invalidating charges that Bankman-Fried misrepresented the intent of a slope relationship acceptable up for his institution North Dimension, the papers said.

In May filings, the U.S. authorities argued it could simply inquire the Bahamas for support to adhd other charges, and that it had jurisdiction arsenic the interaction of his actions were felt successful U.S. crypto markets.

An archetypal proceeding has been acceptable for Thursday.