DOJ Dismisses SBF’s Fraud Allegation Defense as Irrelevant

The U.S. Department of Justice (DOJ) has moved to court, seeking to dismiss SBF’s defense as irrelevant.

Sam Bankman Fried doing some crypto related monkey business with his computer in a prison cell.
Created by Gabor Kovacs from DailyCoin
  • The DOJ dismissed SBF’s defense as irrelevant.
  • SBF wants to implicate his former attorney on fraud charges.
  • The DOJ also seeks to expunge seven expert witnesses lined up by SBF.

The U.S. Department of Justice (DOJ) has filed a new document in court contending that Sam Bankman-Fried’s defense on fraud allegation charges should be dismissed as irrelevant.

SBF, who faces multiple counts connected to the fall of his FTX crypto exchange, has employed a new defense tactic implicating his previous attorney.

The “Advice-of-Counsel” Defense

In the proposed defense argument, SBF stated that his lawyer sanctioned the alleged wire fraud during his tenure as the CEO of FTX. According to him, this doesn’t equate to flouting any laws, as the counsel’s advice confirmed that he was operating within legal parameters.

The DOJ has countered the argument, noting that additional disclosure should be provided to determine whether the proposed defense is relevant and not prejudicial.

If the defendant does not provide additional disclosures, the court should preclude irrelevant, confusing, and prejudicial questioning, evidence, and arguments about the involvement of attorneys,” read the DOJ’s submission.

The DOJ also stated that SBF allegedly provided false information to Silvergate Bank while opening an account for his North Dimension business venture without informing the counsel, asserting that the attorney didn’t know of SBF’s intention to “misuse” the account.

Exclusion of Proposed Expert Witnesses

The filing follows another development where the DOJ proposed to exclude SBF’s expert witnesses from the upcoming October Trial. SBF had paid seven expert witnesses to appear in the case and testify to his innocence.

The expert witnesses included a law professor, a business school assistant professor, a British lawyer, and four heads of different consulting firms. The prosecution urged the court to exercise its gatekeeping authority and preclude the experts from testifying, noting that their testimony is impermissible and could cause unfair prejudicial or confusion to the jury. 

Stay updated on the seven counts to which SBF pleaded not guilty:

Sam Bankman-Fried Pleads Not Guilty to Seven Charges

Read the latest update on the fall of FTX according to Alameda insider:

Alameda Insider Spills Beans on Collapse of FTX’s “Well-Intentioned” Plans

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.