Ex-head of cryptocurrency exchange FTX asked the court to withdraw the prosecutor's requests

Ex-head of cryptocurrency exchange FTX asked the court to withdraw the prosecutor's requests

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Author: James Soplin
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Ex-head of cryptocurrency exchange FTX asked the court to withdraw the prosecutor's requests

The memorandum says the prosecutor's requests are not enforceable in practice and are not supported by law


 

The former head of bankrupt cryptocurrency exchange FTX, Sam Bankman-Fried, filed a memorandum with the court on September 1, asking the court to withdraw the prosecutor's requests, Cointelegraph reported.

The memorandum, prepared by Bankman-Fried's attorney Mark Cohen, states that the prosecutor's requests are "not enforceable in practice and not supported by law," and therefore should not be granted, the article noted.

At the same time, the document calls the U.S. Justice Department's demands "unreasonable." Cohen argues that most of the issues raised by the agency cannot be properly addressed at this stage. The document also says the requests "seek to admit irrelevant and prejudicial evidence concerning conduct that is no longer or never has been charged, to undermine any potential defense, and to admit broad categories of hearsay and other improper evidence," according to the publication.


 

What happens to FTX after bankruptcy

FTX Group's bankruptcy proceedings have been ongoing for several months. The new management of the company started to deal with the return of funds from the recipients of donations from ex-exchange chief Bankman-Fried and his former colleagues back in late December 2022. The company said that if the previously transferred funds are not returned voluntarily, representatives of FTX will apply to the court to return not only the money itself but also the interest on it, which will accrue from the date of filing documents with the court.


 

The memorandum was prepared after the U.S. Department of Justice filed several motions for the court to intervene in various aspects of the case. On August 28, the government filed a motion to bar all experts in the Bankman-Fried case from testifying at trial. According to the agency, all of the proposed experts, as well as their accompanying statements, "have a number of deficiencies" that make it impossible for them to participate in the trial, the publication wrote.

Earlier, Sam Bankman-Fried did not plead guilty to fraud. In early August, prosecutors filed a new indictment, in which the financing of the election campaign by the former head of FTX was combined with other charges.

FTX will sell $3 billion worth of cryptocurrencies to compensate clients in dollars. Hedging risks will help avoid a drop in the value of cryptocurrency assets worth more than $3 billion, according to the crypto exchange's lawyers.

 

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