Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, has filed pretrial motions aiming to dismiss most of the charges brought against him. Bankman-Fried is due to appear in court this fall, facing over a dozen different allegations, including electronic fraud, securities and commodities fraud, and bribery. The charges were brought in connection with his conduct as the former CEO of the defunct exchange. Its collapse last November sent the entire cryptocurrency industry into a tailspin. Millions of FTX users lost billions of dollars in funds.
Fried's legal team has requested the dismissal of several charges in the pretrial motions, including conspiracy to commit electronic fraud against FTX clients, conspiracy to commit electronic fraud against Alameda Research creditors, electronic fraud against Alameda Research creditors, conspiracy to commit bank fraud, and charges related to bribery and political donations. However, they did not seek the dismissal of charges involving conspiracy to commit securities fraud, securities fraud, and conspiracy to launder money.
The former CEO of FTX has denied nearly all the charges and maintains his innocence regarding the exchange's collapse. Bankman-Fried's lawyers highlighted in a legal memorandum that he agreed to extradition based on a list of charges, which did not include some of the accusations later brought against him. They also emphasized the terms of the extradition treaty between the Bahamas and the US, which stipulate that the defendant must agree to any charges filed after extradition.
While the actions of Fried's legal team appear to be quite competent, it remains to be seen how the court will respond. However, even if some charges are dismissed, the remaining allegations involving securities fraud and conspiracy to launder money could still result in a lengthy prison sentence for Bankman-Fried.
On the technical side, Bitcoin's upside potential depends on its ability to maintain control above the key level of $27,200. Holding onto this level would pave the way for a bull market, with $31,000 being the target. The most distant target is $32,300, where substantial profit-taking could send Bitcoin downwards. If sell-side pressure resumes, the focus will shift to holding the support at $27,200. A breakout below this level would send BTC down towards $25,500. If Bitcoin breaks through this level as well, it may slide down to $23,900.
Ethereum bulls, on the other hand, are focused on maintaining control over the closest support level of $1,800 while aiming to break through the nearby resistance at $1,925, a level that has proven challenging to overcome. A successful push above this resistance level would likely propel the cryptocurrency to $2,028, fueling the bullish trend and driving Ethereum towards the $2,127 area. A breakout above this area may extend gains to $2,250. However, if Ethereum faces renewed bearish pressure, it could test the support level of $1,803. A breakout below this point will open the way towards $1,697. From that area, the digital asset could tumble to lows around $1,640.