- The DOJ persists in pressing wire fraud charges against SBF.
- The fallen crypto mogul wanted the court to “consider” his FTX-related charges.
- The prosecutors affirmed the charges despite a crypto law void in the U.S.
Sam Bankman-Fried’s (SBF) attorneys and the prosecutors in his case are still sparring about which charges against the disgraced FTX founder should be considered, even as the criminal trial enters the second day of jury selection.
Just a day before the trial began, counsels representing SBF requested Judge Lewis A. Kaplan to clarify and consider charges pressed on their client in relation to the alleged misappropriation of funds at FTX, arguing that the exchange wasn’t legally regulated in the U.S.
FTX-Related Charges Validated
In response to the defense team’s concerns, the DOJ wrote to Judge Kaplan on October 4, affirming that the prosecution will try Bankman-Fried on FTX-related fraud charges despite the absence of a clear legal framework for crypto in the country.
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The DOJ rebutted the arguments by SBF’s attorneys, stating that even with the necessity of legislation in proving a legal obligation, the lack of it doesn’t influence whether victims lost money to the FTX crypto exchange.
“Where a defendant violates the wire fraud statute by misappropriating assets entrusted to him, it is of no probative value that there was not also an express regulatory prohibition on the particular manner in which he accomplished the fraud,” the DOJ submitted.
On the matter of whether SBF could present his philanthropic side to the jury, the DOJ agreed that the disgraced “crypto golden boy” can do so, provided he notifies the court in advance to ensure the evidence is presented for a “proper purpose.”
Notably, the DOJ reiterated its plan to handle SBF’s political campaign charges, even though they were dropped.
Straw Donor Scheme
According to the DOJ’s letter, the prosecution intends to demonstrate how SBF allegedly orchestrated unlawful and direct donations to political candidates.
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Clarifying that the government will not elicit evidence of whether such a straw donor scheme violates any of the U.S. election laws, the DOJ said that it will raise the issue to establish that SBF misappropriated the funds and took steps to conceal the fraud.
Read how SBF appeared in a fresh look for his first day of trial:
SBF Faces Potential Jurors in a New Haircut and Pressed Suit
Stay updated on why Stanford University wants to return gifts from SBF’s dad:
Stanford University to Return $5.5M “Gifts” from SBF’s Dad
