FTX founder Sam Bankman-Fried is still set to face trial in the fall on several charges related to the collapse of his now-bankrupt cryptocurrency exchange, but recent developments could mean the former CEO could face a second trial next year.
Bankman-Fried appeared in Manhattan federal court Thursday morning where U.S. District Judge Lewis Kaplan heard oral arguments on several motions, but reserved decision on several as the defense seeks to have most of the 13 charges against the disgraced entrepreneur tossed out.
Bankman-Fried, 31, won a slight victory Wednesday when the prosecution agreed to withdraw five charges brought against him since the original eight from his December indictment, after a back and forth over whether the U.S. government had the right to add new counts on top of those related to his extradition from the Bahamas.
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Last night, the government filed a letter with the court consenting to sever the charges from the superseding indictments (with the exception of campaign finance) for the trial scheduled for October 2, and asked for a second trial in 2024 on the fresh charges.
Judge Kaplan did not issue a decision on doing so Thursday, but will now consider the prospect of holding two separate trials for Bankman-Fried.
Bankman-Fried has pleaded not guilty to all 13 charges brought against him. His attorneys previously asked the court to throw out ten of them.
The defense team has pushed to have some of the original eight charges against the former crypto titan dismissed, arguing there was a "rush to judgment" against him.
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The FTX founder capitalized on a rise in bitcoin and other digital assets to accumulate an estimated net worth of $26 billion and became an influential political and philanthropic donor before FTX declared bankruptcy in November.
The cryptocurrency exchange collapsed after a rush of customer withdrawals following reports it had merged assets with Alameda Research, Bankman-Fried's crypto-focused hedge fund.
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Federal prosecutors have accused Bankman-Fried of misleading FTX investors and lenders, and stealing billions of dollars in customer funds to buy real estate, make political contributions through an illegal straw-donor scheme, and to make up for losses at Alameda. He is also charged with bribing Chinese officials.
Bankman-Fried remained quiet throughout Thursday's hearing.
FOX Business' Marta Dhanis, Kelly O'Grady, Landon Mion and Reuters contributed to this report.
