On October 4, the United States Department of Justice (DOJ) filed a motion in response to former FTX CEO Sam Bankman-Fried’s request for clarification and reconsideration of criminal charges against him.
Lawyers for SBF argued that their client was “not guilty because FTX was not regulated in the United States, and he followed the rules concerning FTX US.”
The DOJ disagreed with this argument, stating that the absence of specific regulations doesn’t excuse someone from criminal charges.
They pointed out that while having laws and regulations can establish legal obligations, the lack of them doesn’t change whether or not the defendant’s actions harmed others.
The DOJ also noted that Bankman-Fried’s claim that there were no rules against misusing customer funds is incorrect, as there are existing rules prohibiting such actions.
The DOJ has argued that it is irrelevant to whether the defendant, SBF, made significant false statements or omissions in the supposed “absence of clearly applicable laws or regulations.”
SBF is facing multiple charges currently of wire fraud and misappropriation of customer funds. He was previously in jail for violating his bail conditions & attempting to influence potential witnesses.
SBF’s jury trial began on October 3, and it is expected that the trial may last up to six weeks.
Also Read: First Day Of SBF Trial Goes Quite As Judge Opts For Jurors
