Judge Lewis A. Kaplan has granted an extension for the legal team of disgraced FTX founder, Sam Bankman-Fried, to submit their post-trial motions on December 1st, 2023.
The defense’s chance to redeem SBF
Originally due November 20th, 2023, the defense’s post-trial motions serve as a critical moment in the case, particularly in regards to potentially obtaining a new trial.
According to the signed order dated November 17th, the U.S. government’s response to the motion is now due on December 22nd, 2023.
The post-trial motions extension is the latest development in Bankman-Fried’s legal saga following his full conviction on seven different fraud-related charges in Manhattan federal court earlier this month.
Numerous associates of Bankman-Fried testified against him in the nearly month-long trial, alleging that the FTX founder allowed sister company, Alameda Research, a $65 billion line of credit used for venture investments, political donations, and real estate purchases.
Shortly after the verdict was announced, Bankman-Fried’s lawyers declared that they would “vigorously fight the charges.”
What’s next for FTX
The daunting FTX cleanup is being led by attorney John Jay Ray III. Ray specializes in recovering funds from problematic companies and previously reclaimed over $820 million on behalf of customers of now-defunct energy company, Enron.
“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” Ray stated in a 2022 court filing.
If a U.S. bankruptcy court approves an amended settlement put forward in October 2023, customers could receive “over 90% of distributable value worldwide.
Currently, crypto exchange, Bullish, venture capital firm, Proof Group, and fintech startup, Figure Technologies, are all vying to revive FTX. Kevin Cofsky, a partner at Perella Weinberg Partners who is working with the FTX bankruptcy estate, said in a court hearing that a decision will be made by mid-December regarding who will take the reins of the fallen crypto exchange.
A crackdown on crypto
The case against Sam Bankman-Fried comes as U.S. regulators attempt to crack down on illicit use of funds in the cryptocurrency sphere.
“The fact he was able to get this far speaks to how much regulation is needed in the crypto space,” says Asma Mohammadi, a law student at American University who has been following the case.
Last week, both the Senate and House of Representatives held hearings attempting to address the illicit use of cryptocurrencies in terror financing as well as the need for greater regulatory oversight in the industry.
“It’s essential that we hold bad actors in the digital asset ecosystem accountable in order for legitimate players to thrive,” said House Financial Services Committee Chairman McHenry.
Bankman-Fried’s sentencing is currently scheduled for March 28th, 2024. He is facing a potential separate trial for additional charges, including foreign bribery, set to begin on March 11th, 2024.
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