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FTX Founder Sam Bankman-Fried Challenges Indictment, Request Charges Be Dropped

2 mins
Updated by Kyle Baird
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In Brief

  • FTX founder Sam Bankman-Fried’s lawyers have requested a judge to drop the charges against him.
  • The lawyers state that the charges are civil and regulatory issues that have been turned into federal crimes.
  • Bankman-Fried currently faces 12 charges, which include fraud and conspiring to make illegal political donations.
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Sam Bankman-Fried’s lawyers have filed a document that requests a judge to drop the charges against him. They called the charges a ‘rush to judgment.

FTX founder and former CEO Sam Bankman-Fried has challenged the indictment against him and asked a judge to throw the charges out of court. Bankman-Fried’s lawyers, in a filing submitted to a federal court in Manhattan, said that the charges against him were a ‘rush to judgment’ by prosecutors. They cited the market crash of 2022 as being the main reason behind the collapse.

The lawyers went on to say that what was a civil issue turned out into a criminal one because of haste. The filing reads,

“Rather than wait for traditional civil and regulatory processes following their ordinary course to address the situation, the Government jumped in with both feet, improperly seeking to turn these civil and regulatory issues into federal crimes.”

It’s unclear whether the judge will consider dropping the charges against Bankman-Fried. The FTX founder has dominated headlines since the collapse of the exchange, and his charges are numerous and serious.

Sam Bankman-Fried Faces Multiple Charges

Among the charges laid against Bankman-Fried include fraud and the bribing of Chinese officials. He pleaded not guilty to defrauding customers and faces a total of 12 different charges.

Summary of charges against FTX crypto exchange founder Sam Bankman-Fried: Yahoo! Finance
Summary of Charges Against Sam Bankman-Fried SBF: Yahoo! Finance

Other charges include committing bank fraud and conspiring to make illegal political donations. Allegedly, he made these donations through straw donors or with corporate funds. That includes FTX customer funds.

If the court convicts Bankman-Fried, he could face more than 100 years in prison. He is currently on bail, having paid $250 million.

FTX Taking Steps to Pay Back Customers

Meanwhile, the Japanese unit of FTX has reopened, offering some hope for users of that exchange. The exchange has already allowed customers to withdraw their funds, and this is the start of a long recovery process.

To aid the return of funds of customers, FTX has also sold the LedgerX platform to Miami International Holdings for $50 million. The platform was sold at a steep loss, but FTX needs all the assets and funds it can get in order to repay customers.


In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

Rahul Nambiampurath
Rahul Nambiampurath's cryptocurrency journey first began in 2014 when he stumbled upon Satoshi's Bitcoin whitepaper. With a bachelor's degree in Commerce and an MBA in Finance...