Trial of FTX’s Sam Bankman-Fried possibly 18 months out as US prosecutors put together case against crypto titan
- The bare-bones indictment suggests it was put together quickly and prosecutors have a long road to piecing together evidence of fraud
- Bankman-Fried, who is fighting extradition from the Bahamas, has apologised to customers but said he is not guilty of any crime
FTX founder Sam Bankman-Fried was swiftly indicted after the collapse of his crypto empire, but a trial in New York is likely more than a year away as prosecutors build out their case and both sides spar over evidence.
The bare-bones indictment against Bankman-Fried – which could be amended with more details and co-defendants as the case progresses – suggests prosecutors have a long road ahead piecing together what they have described as one of the biggest financial frauds in American history. Pretrial litigation can also be a lengthy process as both sides argue over the admissibility of evidence, what can and cannot be argued at trial, and whether the case should be dismissed.
“A trial is probably 14 to 18 months out,” said Michael Weinstein, a white-collar criminal defence lawyer and former federal prosecutor.
On Tuesday, US Attorney Damian Williams in Manhattan said a grand jury had indicted Bankman-Fried on wire fraud, securities fraud, commodities fraud, campaign finance law violations and conspiracy charges. Williams said the investigation is “ongoing” and that more announcements are to come.
The indictment came just weeks after Bankman-Fried’s US$32 billion crypto exchange collapsed – an extraordinarily fast turnaround for prosecutors.
Bankman-Fried has apologised to customers but said he is not guilty of any crime. A representative of the crypto entrepreneur declined to comment.
Bankman-Fried was arrested in the Bahamas on Monday but indicated he would fight extradition to the United States. He is behind bars in a Bahamian correctional centre and will not enter a plea until he is arraigned in the United States. His absence keeps potentially years-long pretrial litigation on hold.