Sam Bankman-Fried, the creator of FTX, has been granted the right to contest additional allegations brought against him in the United States. Bankman-Fried was extradited from the Bahamas after recently pleading not guilty to fraud allegations. The Bahamas Supreme Court found in his favor, allowing him to reconsider his extradition terms. They are even allowing him to contest the insertion of further charges.
The legal investigation into Bankman-Fried began after the cryptocurrency exchange went bankrupt in November. Initially, he was charged with wire fraud and money laundering. However, US authorities eventually wanted to add bank fraud allegations.
Bankman-Fried maintains his innocence, pleading not guilty to all allegations and requesting that several of them be dismissed. He claims that he should be able to oppose any new allegations before the Bahamas approves their inclusion in the case.
In a win for Bankman-Fried, the Bahamas Supreme Court Judge permitted him to commence judicial review proceedings. This means that the Bahamas government cannot impose additional fees until the review process is completed. Previously, the administration claimed that agreeing to the US request was an issue between sovereign governments.
BREAKING: 🚀Sam Bankman-Fried, granted opportunity to contest additional charges! 🛡️💼 #CryptoTrial
— Walletor (@walletorapp) June 14, 2023
The court emphasized the importance of a review procedure but did not speculate on its result. Bankman-Fried’s lawyer acknowledged their intention to seek judicial review. The lawyer also warned that the legal proceedings in the Bahamas might last months or perhaps years. A delay of this magnitude could restrict their preparation time for defending against the new charges.
The outcome of Sam Bankman-Fried’s challenge to the additional charges will have an influence on the blockchain industry as the court struggle plays out. The Bahamas Supreme Court’s decision to allow him to challenge the charges sets the ground for a serious investigation of the claims against him. Everyone in the crypto world will be keeping an eye on the case in the hopes of a favorable outcome.