The United States Department of Justice (DOJ) has taken a firm stance in the ongoing legal battle against former FTX CEO Sam “SBF” Bankman-Fried.
On October 4th, the DOJ filed a motion in court, asserting that the absence of cryptocurrency regulations in the United States should not hinder the criminal charges brought against SBF.
This move by the DOJ was prompted by SBF’s request for clarity and reconsideration of charges related to alleged fund misappropriation within FTX.
SBF’s defense team had argued that their client was innocent because FTX operated without U.S. regulation, asserting that he had adhered to the applicable rules concerning FTX US.
In response, the DOJ declared this argument irrelevant, contending that the absence of specific legislation does not absolve SBF of alleged financial misconduct.
The DOJ emphasized that the existence of regulations may be necessary to establish legal obligations but does not alter the fact that the defendant’s victims entrusted him with their money.
The department also pointed out that the defendant’s claim regarding a lack of regulations pertaining to customer funds usage is untrue, as there are existing rules prohibiting such actions.
Furthermore, the DOJ maintained that existing laws already prohibit companies from misappropriating customer assets, and SBF has been charged accordingly.
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It was asserted that SBF had engaged in substantial misrepresentations to customers and had allegedly stolen their funds. T
he presence or absence of clear regulations, the DOJ argued, should not diminish the gravity of these actions.
SBF currently faces multiple charges, including wire fraud and misappropriation of customer funds, and he is currently incarcerated for violating his bail conditions and attempting to influence potential witnesses. Despite multiple appeals for pre-trial release, SBF remains in custody.
His legal team cited difficulties related to internet connectivity hindering his defense preparations and a lack of vegan meal options as reasons for their requests.
SBF’s trial began on October 3rd, with indications that it could extend for up to six weeks.
The DOJ’s recent motion underscores its determination to pursue the charges against SBF, irrespective of the regulatory landscape surrounding cryptocurrencies in the United States.
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