The decision by US District Judge Lewis Kaplan in Manhattan
paves the way for an October 2 trial of Bankman-Fried, a 31-year-old former
billionaire.
Prosecutors accused Bankman-Fried of stealing billions of
dollars in FTX customer funds to plug losses at his Alameda Research hedge
fund.
They also accused Bankman-Fried of misleading investors and
lenders, and contributing illegally to US political campaigns in the names of
colleagues.
Bankman-Fried has pleaded not guilty and denied stealing
funds, while acknowledging that FTX had inadequate risk management.
Bankman-Fried in May asked Kaplan to dismiss at least 11 of
the 13 fraud and conspiracy charges he faced.
Bankman-Fried said some charges relied on a fraud theory —
where a defendant could be convicted for depriving someone of economically
valuable information and not just tangible property — the US Supreme Court last
month deemed invalid.
But the judge agreed with prosecutors that the theory, known
as right to control, did not apply to Bankman-Fried.
"The defendant's assertion that the indictment does not
allege any 'economic loss' to FTX customers appears to be factually
incorrect," and the alleged misappropriated funds clearly constituted
property, Kaplan wrote.
A spokesman for Bankman-Fried declined to comment.
Bankman-Fried also argued that some charges were improperly
brought without consent from the Bahamas, where he was arrested in December and
extradited to the United States.
An extradition treaty between the United States and the
Bahamas, where FTX was based, says a country must consent before defendants can
be tried on charges brought after their extradition.
Kaplan this month said a second trial will be held March 11
on the five charges prosecutors brought against Bankman-Fried after his
extradition.
Prosecutors said they asked the Bahamas to agree to those
charges, which include conspiracy to bribe Chinese officials and commit bank
fraud, but did not know when the Caribbean country would grant its consent. ©
Reuters