- SBF’s attorneys have submitted a proposed jury charge.
- The lawyers claim FTX offered services under English law.
- The argument seeks to water down the DOJ’s theory on FTX charges.
Lawyers representing disgraced FTX founder Sam Bankman-Fried (SBF) have renewed their bid to convince the jury that the fallen crypto mogul did not misappropriate customer funds, as the U.S. Department of Justice (DOJ) alleges in its case and testimonies.
On October 30, SBF’s legal team wrote to Judge Lewis A. Kaplan, submitting an enclosed proposed jury charge and supporting authorities that seek to prove FTX’s relationship with its customers was guided by the exchange’s Terms of Service, anchored in English law.
The Lawyers Fault DOJ Charges
In a filing accompanying the jury charge proposal, the lawyers argued that DOJ’s charges against SBF and his crypto exchange were wrong, given that FTX’s Terms of Service do not create a trust relationship or a similar fiduciary relationship between the company and its customers.
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Further, the lawyers reiterated that the mere fact that a person subjectively believed or expected that a trust or fiduciary relationship existed between them and FTX does not create such a relationship.
“The Terms of Service provided that they would be governed by, and construed in accordance with, English law,” the lawyers submitted.
“Under English law, whether a contract creates a trust or similar fiduciary relationship is a question of interpreting the contract, and in doing so, the court’s task is to ascertain the objective meaning of the language which the parties have chosen in which to express their agreement.”
Based on this argument, the lawyers want the jury to believe the government’s charges against SBF are a wild goose chase.
Proving SBF’s “Good Conduct”
Per the lawyers, under FTX’s Terms of Service, SBF did not misappropriate customer funds but only discharged his CEO role in “good faith.”
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The lawyers claim that the Government’s theory in its fraud indictment against the fallen crypto mogul and his exchange doesn’t hold water, as it lacks the prerequisites of establishing a misappropriation charge.
If, in any case, the prosecution believes a misappropriation occurred at FTX, the lawyers hold that the government should demonstrate that by proving the fiduciary relationship between customers and the exchange.
Read more about what FTX co-founder revealed during SBF’s trial:
FTX Co-founder Admits He Had No Idea about Cryptocurrency
Stay updated on how SBF’s day at the witness stand turned out:
Bankman-Fried’s Risky Bet at the Witness Stand Turns Sour
