Department of Justice Responds to Crypto Executive's Request for Clarification on Charges
The United States Department of Justice (DoJ) has filed a court motion addressing the lack of cryptocurrency regulations in the country and its impact on the criminal charges against Sam Bankman-Fried, the former CEO of bankrupt cryptocurrency exchange FTX. This comes as a response to Bankman-Fried's request for clarification and reconsideration of the charges related to funds misappropriation at FTX. The defendant's legal team argued that their client should not be considered guilty as FTX was not regulated in the United States and that he had followed all the rules governing FTX US.
DoJ Claims Lack of Regulations Does Not Affect Criminal Charges
The DoJ has dismissed this argument, stating that the absence of legislation does not affect the fact that the defendant's victims entrusted their money to him. The department asserts that even though the existence of regulations is crucial in establishing legal obligations, their absence does not impact the charges against Bankman-Fried. They contend that there are already rules prohibiting companies from stealing customer assets, and the defendant has been charged accordingly. The DoJ also alleges that the defendant made substantial misrepresentations to customers and embezzled funds from them.
Irrelevance of Regulations to Misstatements and Fraud Allegations
The DoJ further argues that the defendant's claim of substantial misstatements or omissions is irrelevant in the absence of applicable laws or regulations. Regardless of whether there is regulation in place, it cannot be proven that the wire fraud allegations were committed with the necessary intent. This means that whether or not there are regulations, the charges of wire fraud remain applicable.
Multiple Charges and Bail Appeal
Sam Bankman-Fried currently faces multiple charges, including wire fraud and misappropriation of customers' funds, among others. He is currently in jail for violating his bail conditions and attempting to influence potential witnesses. Bankman-Fried has made several unsuccessful appeals to be released on bail before the trial, citing the lack of internet connection hindering his defense preparations and the unavailability of vegan meals. Reports suggest that the jury trial may last up to six weeks.
