Sam Bankman-Fried judge weighing two separate trials for FTX founder
The FTX founder won a small legal victory this week
FTX founder Sam Bankman-Fried arrives in federal court
Disgraced FTX founder Sam Bankman-Fried now faces 13 charges related to the collapse of his cryptocurrency empire. He has pleaded not guilty to all counts.
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.
Sam Bankman-Fried, co-founder of FTX Cryptocurrency Derivatives Exchange, arrives at court in New York on Thursday. Bankman-Fried faces a series of charges related to the collapse of his crypto empire. (Yuki Iwamura/Bloomberg via Getty Images / Getty Images)
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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On Wednesday 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 Oct. 2, and asked for a second trial in 2024 on the fresh charges.
A sketch of Sam Bankman-Fried sitting in Manhattan federal court, backed by his defense team, on Thursday. (Christine Cornell)
Judge Kaplan did not issue a decision on doing so Thursday, but will now consider the prospect of holding two separate trials.
Bankman-Fried has pleaded not guilty to all 13 charges brought against him. His attorneys previously asked the court to throw out 10 of them.
The defense team has pushed to have some of the original eight charges against the former crypto titan dismissed, arguing that 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 that it had merged assets with Alameda Research, Bankman-Fried's crypto-focused hedge fund.
The FTX Arena logo is seen where the Miami Heat basketball team plays in Miami on Nov. 12, 2022. (AP Photo/Marta Lavandier, File / AP Newsroom)
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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 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 and Landon Mion and Reuters contributed to this report.