Wednesday

In the unfolding legal drama involving Sam Bankman-Fried, founder of FTX, the U.S. Department of Justice (DOJ) remains steadfast in its stance. The issue at hand? The misuse of customer funds from FTX is an allegation that Bankman-Fried has firmly denied. The trial, which commenced on Tuesday, is witnessing spirited debates about the admissibility of certain evidence.
Interestingly, the DOJ stated on Wednesday that the lack of a clear legal framework for cryptocurrencies in the U.S. does not inhibit them from pursuing fraud charges against Bankman-Fried. They argue that while specific laws might be pivotal to establishing a statutory duty of care, the absence of such regulation does not influence the factuality of entrusted money to the defendant.
They emphasized that the existing rules against misappropriating customer assets are what Bankman-Fried is being charged for. Hence, the argument that the regulatory ambiguity of crypto exchanges is pertinent seems to be falling on deaf ears at the DOJ.
Additionally, prosecutors are not buying into Bankman-Fried’s rationale that reallocating customer funds was an industry norm then. They assert that such an argument only holds water if he genuinely believed this practice was within legal confines. Consequently, this again highlights the tension between the rapidly growing crypto industry and regulatory bodies, especially with major players like Ripple, Binance, and Coinbase advocating for specific crypto-centric regulations.
Moreover, the philanthropic and charitable endeavors of Bankman-Fried have come under the spotlight. The DOJ has indicated that while these actions can be presented to the jury, they should be vetted by the court to ensure they don’t merely serve to polish his image.
Besides the core allegations, there’s a side narrative concerning Bankman-Fried’s alleged indirect political contributions. However, the government has delineated its stance on this matter. They clarified that while they wouldn’t establish the illegality of such donations under election laws, they are introducing this topic to showcase the discrepancy between his promises to customers and the actual disposition of the funds.
Significantly, this development comes after the initial accusations concerning political donations were omitted because they were not part of the original extradition agreement with the Bahamas, where Bankman-Fried was apprehended in December.

DOJ persists on Bankman-Fried charges despite crypto law void

Cryptopolitan_News

Other articles published on Oct 4, 2023

Researchers discover that even after sensitive data is “deleted,” LLMs like ChatGPT continue to p...

Minister Bosun Tijani to share agenda for Nigeria’s digital economy at Moonshot 2023

Bitcoin (BTC) Price Striving Hard Post Brief Retracement

Terra LUNC Community Vote Against $130,000 Spending Proposal

Bitcoin’s Recent Rally: a Short-Lived Bullish Signal Amidst Bear Market Concerns

🔥BREAKING: MelegaSwap Becomes an Official Partner of GemPad!

Join our free newsletter for daily crypto updates!