USA: FTX founder Sam Bankman-Fried was swiftly charged following the demise of his crypto empire, but the New York trial is likely to take more than a year to complete as prosecutors develop their case and Both sides argue on this.
Prosecutors may be having difficulty piecing together what they have called one of the biggest financial frauds in US history, laying out a bare-bones indictment against Bankman-Fried, which could be revised as the case gathers more information and co-authors. - Evolves with the respondent.
Pre-trial litigation can also be a lengthy process as both sides argue the admissibility of evidence, what can and cannot be argued at trial, and whether the case should be dismissed.
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The trial is likely 14 to 18 months away, according to white-collar criminal defense attorney and former federal prosecutor Michael Weinstein.
A grand jury indicted Bankman-Fried on charges of conspiracy, wire fraud, securities fraud and commodities fraud on Tuesday, according to US Attorney Damien Williams in Manhattan. More announcements will be made, according to Williams, who said the investigation is "ongoing."
In a shockingly quick turn for prosecutors, the indictment comes just weeks after the collapse of Bankman-US$32 billion Fried's cryptocurrency exchange.
Bankman-Fried apologized to her clients but insisted she was innocent of all charges. A representative for the cryptocurrency entrepreneur declined to comment.
Bankman-Fried was taken into custody in the Bahamas on Monday but made it clear she would oppose extradition to the US. He is being held in a prison in the Bahamas and will not enter a plea until he is tried in a US court. His absence has stalled potentially lengthy pre-trial litigation.
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Legal professionals doubt Bankman-Fried will win his fight against extradition, but he may give up after a Bahamian judge denies him bail in the coming months. On Thursday, banker-attorney Frieds filed a fresh bail application.
No matter where Bankman-Fried is taken into custody, prosecutors will spend the coming months reviewing evidence and talking with witnesses, including potentially preparing to submit a so-called superseding indictment. including new information or co-respondents. According to legal experts, the scant details of the indictment show that there is still a lot of work to be done.
Renato Mariotti, a former federal prosecutor with experience in cases involving financial fraud, said the indictment "doesn't contain smoking-gun details like emails and documents used to look into fraud cases.
This shows they put it together quickly, but they wouldn't file such high-profile charges if they didn't believe they had evidence," the prosecutor said.
The restructuring executive for FTX described the company as a chaotic operation that transferred assets without following basic accounting or record-keeping procedures, which would likely make it more difficult for prosecutors to develop their case. will make it difficult
It may take some time to enlist the assistance of former FTX employees who can explain illegal records, especially if negotiations for immunity or plea deals in exchange for cooperation are involved.
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According to Weinstein, they would need an insider who participated in the decision-making or who had access to internal processes. US Attorney Williams provided a clarifying statement to those who may know something about FTX's demise on Tuesday. "I would urge you to contact us immediately if you have not spoken to us."