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Sam Bankman-Fried urges court to dismiss charges

FTX CEO Sam Bankman-Fried is seeking to have up to 10 criminal charges against him dismissed in court, months ahead of his scheduled criminal trial in October.

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FTX CEO Sam Bankman-Fried is seeking to have up to 10 criminal charges against him dismissed in court, months ahead of his scheduled criminal trial in October.

In court documents filed in the Southern District Court in New York on May 8, SBF’s legal team pushed to dismiss everything apart from three counts of conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering.

Commenting on the move, crypto researcher Molly White suggested that “at least part of it seems to come down to the fact that additional charges were added after SBF’s extradition agreement was made.”

SBF was initially extradited to the U.S. from the Bahamas to face eight criminal charges of alleged fraud and money laundering; however, his legal team is arguing that the four of the five additional charges that were since been added from February “violates the Treaty’s rule of specialty provision.”

Under the “rule of specialty,” the requesting state (the U.S.) is generally bound to trial the extradited offender (SBF) only for the offense for which they were extradited.

During the extradition proceedings in The Bahamas, it was the understanding of all parties in court, coram judice¸ and the Court itself, that the specialty provisions applied notwithstanding the use of the simplified procedure. There was no waiver of the rule of specialty. To the contrary, there was an express acknowledgment that it applied, the lawyers argued.

These four charges include conspiracy to commit bank fraud and other individual wire fraud charges related to his alleged actions at FTX and Alameda. The most recent charge added, on March 28, concerns the alleged $40 million bribery of a Chinese government official.

Aside from this, SBF’s lawyers are also seeking to dismiss other charges relating to “conspiracy to defraud the United States” and charges relating to wire fraud and conspiracy to commit wire fraud, arguing there has been a failure to state an adequate offense in these counts.

According to his legal team, the initial indictment sent via a Diplomatic Note fails to properly specify the violation relating to campaign financing laws, and it also doesn’t reference any U.S. bank accounts, including any bank accounts affiliated with FTX or Alameda relating to the wire fraud charges.

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Binance tightens South African compliance rules for crypto transfers

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Binance is tightening compliance measures for crypto transactions in South Africa, announcing it will fully implement the country’s Travel Rule requirements beginning January 2025. The move aligns with regulations set by South Africa’s Financial Intelligence Centre (FIC) and reflects the exchange’s broader efforts to meet global anti-money laundering standards.

Under the new rules, Binance will require South African users to include verified personal information—such as names, addresses, and account details—when sending or receiving crypto between platforms. These changes are designed to increase transparency and traceability of digital asset transfers, making it harder for illicit actors to exploit decentralized networks.

Binance emphasized that users must complete know-your-customer (KYC) verification before transferring crypto to or from external wallets. Transfers to non-compliant platforms may be restricted or flagged, while internal transfers within Binance or to Travel Rule-compliant entities will remain unaffected.

The announcement follows South Africa’s decision in 2023 to designate crypto as a financial product, placing digital asset providers under the supervision of the FIC. The country has since taken steps to integrate crypto into its formal regulatory structure, including licensing requirements and mandatory reporting obligations.

With enforcement beginning in 2025, Binance urged users to familiarize themselves with the new procedures to avoid disruptions. The exchange also plans to provide additional guidance and tools to help users remain compliant as the deadline approaches.

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Ethereum bounces back as market dominance recovers from all-time low

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Ethereum has staged a notable recovery after recently experiencing its lowest market dominance since its early days. The turnaround comes as ETH surged nearly 4% in the past 24 hours, climbing back above the $3,100 mark and narrowing its underperformance gap relative to Bitcoin.

For much of 2024, Ethereum has trailed behind Bitcoin and a growing wave of altcoins, with its market share dropping below 15% — levels not seen since 2015. The slump was driven by investor focus on Bitcoin ETF momentum, lackluster institutional interest in ETH, and rising competition from layer-1 and layer-2 networks offering faster and cheaper alternatives.

Despite these challenges, Ethereum’s fundamentals remain strong. Data shows a healthy uptick in active addresses, transaction volumes, and total value locked in DeFi protocols built on Ethereum. Additionally, hopes remain high for the approval of a spot Ethereum ETF in the U.S., with analysts suggesting a potential turnaround in institutional flows if approved.

Traders are now watching whether this rebound signals a sustained trend reversal or just a temporary relief rally. With key upgrades and ecosystem developments still in the pipeline, Ethereum’s ability to regain dominance may hinge on reigniting both investor confidence and broader developer activity.

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SEC says it won’t re-file fraud case against Hex’s Richard Heart

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The U.S. Securities and Exchange Commission (SEC) has confirmed it will not pursue a retrial in its fraud case against HEX founder Richard Heart, effectively bringing an end to one of the agency’s high-profile crypto enforcement actions.

The decision follows a recent court ruling that dismissed several key allegations against Heart, including claims that he misled investors and violated securities laws through the promotion and sale of HEX, PulseChain, and PulseX tokens. While the SEC initially signaled it would consider further legal options, it has now opted to forgo additional litigation.

Heart, a controversial figure in the crypto world, had long denied the SEC’s accusations, framing the lawsuit as an overreach by regulators. The agency had alleged that Heart raised over $1 billion from investors while misrepresenting how funds would be used and failing to register the offerings.

With the SEC stepping back, the dismissal marks a rare instance in which the regulator has chosen not to continue a crypto-related fraud case, potentially signaling a reassessment of its approach amid growing legal pushback and mounting scrutiny over its enforcement tactics.

Although the case is now closed, legal analysts suggest the outcome could influence future regulatory efforts and may embolden other crypto founders facing similar challenges. Heart, meanwhile, has positioned the development as a vindication, reaffirming his stance that HEX and related projects were never in violation of U.S. securities laws.

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